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Murphy cannot wait for his mom to get home. After all, it is not every day that you get your first job! Murphy was just hired at the Stop and Shop Grocery as a sacker. They will pay him $8 an hour. He can work up to 35 hours a week during the summer, and he can work 20 hours a week during the school year.
Based on Murphy's calculations, he can earn enough money to buy a used motorcycle in six months. Here's his estimated earnings: 35 hours a week at $8 an hour is $280 (35 x $8 = $280). That is $1,120 a month ($280 x 4 = $1,120).
1. What is wrong with Murphy's plan?
2. Will he really take home $1,120 each month?
3. Distinguish between gross earnings and take-home pay. What does the employer do with the difference?
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