Question

can i afford this? hours of work
name: kedawit r date: score: ______/14

activity: new cell phone
cost: $998.00
hourly wage: $15.55

hours	gross pay	net pay gross pay x .85
8 hours	$
12 hours	$
16 hours	$
20 hours	$

how many hours would you need to work to afford this thing? ______ hours
what other costs would you need to pay for to enjoy or use this thing? ______

will a 4-hour shift be enough hours to cover the cost? ______ yes no
if your next paycheck was for 20 hours of work, would that cover the cost? ______ yes no
in your opinion, is the cost worth all the hours you would need to work to afford it? ______ yes no

Explanation:

Calculate table values

Using the Gross Pay and Net Pay knowledge points:

• Hourly Wage: \(\$15.55\)
• Net Pay Formula: \(\text{Gross Pay} \times 0.85\)

For 4 hours:

• \(\text{Gross Pay} = 4 \times 15.55 = \$62.20\)
• \(\text{Net Pay} = 62.20 \times 0.85 = \$52.87\)

For 8 hours:

• \(\text{Gross Pay} = 8 \times 15.55 = \$124.40\)
• \(\text{Net Pay} = 124.40 \times 0.85 = \$105.74\)

For 12 hours:

• \(\text{Gross Pay} = 12 \times 15.55 = \$186.60\)
• \(\text{Net Pay} = 186.60 \times 0.85 = \$158.61\)

For 16 hours:

• \(\text{Gross Pay} = 16 \times 15.55 = \$248.80\)
• \(\text{Net Pay} = 248.80 \times 0.85 = \$211.48\)

For 20 hours:

• \(\text{Gross Pay} = 20 \times 15.55 = \$311.00\)
• \(\text{Net Pay} = 311.00 \times 0.85 = \$264.35\)

Calculate hours needed

Using the Financial Planning knowledge point:

• Cost of cell phone: \(\$998.00\)
• Hourly Net Wage: \(15.55 \times 0.85 = \$13.2175\text{ per hour}\)
• \(\text{Hours Needed} = \frac{998.00}{13.2175} \approx 75.51\text{ hours}\)
• Rounding up to the nearest whole hour: \(76\text{ hours}\)

Identify additional costs

Using the Financial Planning knowledge point:

• To use a cell phone, you need a monthly service plan (talk, text, data).
• Other potential costs include a protective case, screen protector, or charger.

Evaluate shift scenarios

Using the Financial Planning knowledge point:

• Will a 4-hour shift cover the cost?
• Net pay for 4 hours is \(\$52.87\), which is less than \(\$998.00\). Answer: NO.
• Will a 20-hour paycheck cover the cost?
• Net pay for 20 hours is \(\$264.35\), which is less than \(\$998.00\). Answer: NO.

Formulate personal opinion

Using the Financial Planning knowledge point:

• Working 76 hours is equivalent to almost two full weeks of full-time work (40 hours/week) just to afford the phone.
• This is a subjective decision based on individual priorities.

Answer:

Table Calculations

Hours	Gross Pay	Net Pay (Gross Pay \(\times 0.85\))
8 hours	\(\$124.40\)	\(\$105.74\)
12 hours	\(\$186.60\)	\(\$158.61\)
16 hours	\(\$248.80\)	\(\$211.48\)
20 hours	\(\$311.00\)	\(\$264.35\)

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Questions and Answers

• How many hours would you need to work to afford this thing?

\(76\) hours (calculated as \(\frac{\$998.00}{\$13.2175/\text{hour}} \approx 75.51\) hours)

• What other costs would you need to pay to enjoy or use this thing?

A monthly phone plan (data/calls), a phone case, and a screen protector.

• Will a 4-hour shift be enough hours to cover the cost?

NO

• If your next paycheck was for 20 hours of work, would that cover the cost?

NO

• In your opinion, is the cost worth all the hours you would need to work to afford it?

No, working 76 hours (nearly two full work weeks) is a very high time investment for a single phone.