Tony's hourly wage is $20 and his net pay is 75% of his earnings. Tony spends about $1,900 on his monthly expenses. If Tony works 40 hours per week and has no other sources of income, what is his net monthly cash flow?

The net monthly cash flow is $500

Step-by-step explanation:

The computation of the net monthly cash flow is shown below:

= Earnings - expense

where,

Earnings is

= Hourly wage rate × number of hours worked per week × given percentage × number of weeks in a month

= $20 × 40 hours × 75% × 4

= $2,400

And, the monthly expense is $1,900

So, the net monthly cash flow is

= $2,400 - $1,900

= $500

hence, the net monthly cash flow is $500

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step-by-step explanatio89