A borrower earns $15 per hour, works 40 hours per week, for 52 weeks per year. What is the gross monthly income?

A borrower earns $15 per hour, works 40 hours per week, for 52 weeks per year. What is the gross monthly income?

• A. 2600
• B. 2400
• C. 3200
• D. 2800

Answer: (A)

Converting hourly pay to monthly gross income requires projecting annual earnings and then averaging over 12 months. Multiply the hourly rate by hours per week and by weeks per year to get yearly gross income: 15 × 40 × 52 = 31,200. Divide by 12 to get monthly gross income: 31,200 ÷ 12 = 2,600. Therefore, gross monthly income is $2,600. This amount is before taxes and any other deductions. An alternative check: monthly hours ≈ 40 × 52 ÷ 12 ≈ 173.33, then 173.33 × 15 ≈ 2,600.

Converting hourly pay to monthly gross income requires projecting annual earnings and then averaging over 12 months. Multiply the hourly rate by hours per week and by weeks per year to get yearly gross income: 15 × 40 × 52 = 31,200. Divide by 12 to get monthly gross income: 31,200 ÷ 12 = 2,600. Therefore, gross monthly income is $2,600. This amount is before taxes and any other deductions. An alternative check: monthly hours ≈ 40 × 52 ÷ 12 ≈ 173.33, then 173.33 × 15 ≈ 2,600.