Time Travel, Inflation Style
Amount of money I have: $1,000
What happened to the numbers on your chart? Why did they change the way they did? What does this say about the value of a dollar and inflation?
The amount of money changes drastically, the older the money the greater amount it equals today due to inflation, because if you look at prices of things back then compared to now there is a greater difference. back in the 1920's a brand new car cost only about $2,000 dollars but in today's market a brand new car can cost upward of $20,000.
Scenario:
Courtney is a senior in college and just started her first job as a sales associate. At her new job, she expects to make about $24,000 per year. She is excited to receive her first paycheck, which is given every two weeks. Courtney learns that 15% of her gross pay will be withheld for federal income tax, 4% for state income tax and 6% for Social Security and Medicare taxes. Help Courtney figure out what her take home, or net pay is, and how much she will pay in taxes each paycheck.
A. How much money will Courtney pay in taxes each paycheck?
Federal- $3,600
State- $960
Social Security and Medicare- $1,440
B. What is Courtney’s net pay? In other words, how much money does Courtney take home from each paycheck after paying all taxes? $18,000
C. Based on your knowledge of taxes, to which programs, services and accounts do you think the money withheld from Courtney’s paycheck will go? Community Projects, city water treatment, electrical for city, police dept., military, etc...
The amount of money changes drastically, the older the money the greater amount it equals today due to inflation, because if you look at prices of things back then compared to now there is a greater difference. back in the 1920's a brand new car cost only about $2,000 dollars but in today's market a brand new car can cost upward of $20,000.
Scenario:
Courtney is a senior in college and just started her first job as a sales associate. At her new job, she expects to make about $24,000 per year. She is excited to receive her first paycheck, which is given every two weeks. Courtney learns that 15% of her gross pay will be withheld for federal income tax, 4% for state income tax and 6% for Social Security and Medicare taxes. Help Courtney figure out what her take home, or net pay is, and how much she will pay in taxes each paycheck.
A. How much money will Courtney pay in taxes each paycheck?
Federal- $3,600
State- $960
Social Security and Medicare- $1,440
B. What is Courtney’s net pay? In other words, how much money does Courtney take home from each paycheck after paying all taxes? $18,000
C. Based on your knowledge of taxes, to which programs, services and accounts do you think the money withheld from Courtney’s paycheck will go? Community Projects, city water treatment, electrical for city, police dept., military, etc...