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Take home pay is $8 per hour and a clothing item costs $80. How much working time does the item cost?
A10 hours of work
B8 hours of work
C12 hours of work
D16 hours of work
Answer & Solution
Correct answer: A. 10 hours of work
1. Pricing a purchase in working time turns dollars into hours.
2. Divide the price of the item by take home pay per hour.
3. The price is $80 and take home pay is $8 per hour.
4. $80 divided by $8 per hour gives 10 hours.
5. So the item costs 10 hours of work.
6. Answering 8 hours repeats the hourly rate instead of dividing by it.
7. Answering 16 hours doubles the correct figure, as if pay were $5 per hour.
_Source: FDIC Money Smart for Adults (September 2018), Module 5: Your Savings, section Apply It: My Quick Tips for Finding Money to Save_
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