Question

Loretta’s income last year was $81,300. She made $56,800 at her salaried job and had additional passive income. If Loretta earned the same amount of passive income each month for the entire year, approximately how much per month was it?

a.
$2,040
b.
$2,125
c.
$4,730
d.
$6,775

Answer 1

Option a. $2,040

Answer 2

Option a. $2,040

Explanation:

step 1

To find out the amount of the additional passive income last year, subtract the amount earned at her salaried job from Loretta’s income last year

so

`\$81,300-\$56,800=\$24,500`

step 2

Divide the additional passive income last year by 12 (number of months in a year)

`\$24,500/12=\$2,041.67`

therefore

approximately $2,400 per month