MAT 143 6.5 LAB THE COST OF LIVING IN DIFFERENT PARTS OF THE UNITED STATES The cost of living can vary considerably across the United States. According to the Missouri Economic Research and Information Center, Mississippi offers the lowest average cost of living while Hawaii tops the list as the most expensive state in the nation. In this activity, you will investigate the cost of living in two metropolitan areas. The figures in the following table represent a reasonable monthly budget for a family of four with two working adults to attain a modest, yet adequate, standard of living in both the Toledo Metro Area in Ohio and in the Providence Metro area in Rhode Island in 2021. Toledo, OH Expense Housing Food Child Care Transportation Health Care $895 Other Necessities $576 Taxes $643 Monthly Total $5825 $726 $701 $1120 $1164 Providence, RI $1014 $798 $1659 $1112 $793 $731 $901 $7008 1. The 2022 minimum wage in Ohio is $9.30 per hour. How many hours must each adult in the family work per month at this pay rate to earn the $5825 dollars needed to live in Toledo? Round to the nearest whole hour. Hint: 2 adults are working. 2. Repeat your calculation for Providence, knowing that the 2022 minimum wage is Rhode sland is $12.25 and the necessary income is $7008? Round to the nearest whole hour. Hint: 2 adults are working. 3. Which city is the one with a true higher cost of living compared to the state's minimum wage. 4. Now, assume that a regular work week is made of 40 hours and that there are approximately 4.3 weeks in a month. How much money must each adult earn per hour in Toledo to meet their budget assuming they work regular work weeks during a month? How many times more than the minimum wage in Ohio is the hourly rate you calculated? Assume both adults have equal incomes. Round to the nearest cent. 5. Now, assume that a regular work week is made of 40 hours and that there are approximately 4.3 weeks in a month. How much money must each adult earn per hour in Providence in order to meet their budget assuming they work regular work weeks during a month? How many times more than the minimum wage in Rhode Island is the hourly rate you calculated? Assume both adults have equal incomes. 6. What do you notice about the monthly expenses between the two cities? With that information in mind, why do you believe there is such a large discrepancy between the minimum wage in each state and the hourly rates you found in parts 4 and 5?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
icon
Related questions
Question
**MAT 143**

**6.5 LAB**

**THE COST OF LIVING IN DIFFERENT PARTS OF THE UNITED STATES**

The cost of living can vary considerably across the United States. According to the Missouri Economic Research and Information Center, Mississippi offers the lowest average cost of living while Hawaii tops the list as the most expensive state in the nation. In this activity, you will investigate the cost of living in two metropolitan areas. The figures in the following table represent a reasonable monthly budget for a family of four with two working adults to attain a modest, yet adequate, standard of living in both the Toledo Metro Area in Ohio and in the Providence Metro Area in Rhode Island in 2021.

| **Expense**          | **Toledo, OH** | **Providence, RI** |
|----------------------|-----------------|---------------------|
| Housing              | $726            | $1014               |
| Food                 | $701            | $798                |
| Child Care           | $1120           | $1659               |
| Transportation       | $1164           | $1112               |
| Health Care          | $895            | $793                |
| Other Necessities    | $576            | $731                |
| Taxes                | $643            | $901                |
| **Monthly Total**    | **$5825**       | **$7008**           |

1. The 2022 minimum wage in Ohio is $9.30 per hour. How many hours must each adult in the family work per month at this pay rate to earn the $5825 dollars needed to live in Toledo? Round to the nearest whole hour. Hint: 2 adults are working.

2. Repeat your calculation for Providence, knowing that the 2022 minimum wage in Rhode Island is $12.25 and the necessary income is $7008? Round to the nearest whole hour. Hint: 2 adults are working.

3. Which city is the one with a true higher cost of living compared to the state's minimum wage.

4. Now, assume that a regular work week is made of 40 hours and that there are approximately 4.3 weeks in a month.

   How much money must each adult earn per hour in Toledo to meet their budget assuming they work regular work weeks during a month? How many times more than the minimum wage in Ohio is the hourly rate you calculated? Assume both adults have equal incomes. Round to the nearest cent.
Transcribed Image Text:**MAT 143** **6.5 LAB** **THE COST OF LIVING IN DIFFERENT PARTS OF THE UNITED STATES** The cost of living can vary considerably across the United States. According to the Missouri Economic Research and Information Center, Mississippi offers the lowest average cost of living while Hawaii tops the list as the most expensive state in the nation. In this activity, you will investigate the cost of living in two metropolitan areas. The figures in the following table represent a reasonable monthly budget for a family of four with two working adults to attain a modest, yet adequate, standard of living in both the Toledo Metro Area in Ohio and in the Providence Metro Area in Rhode Island in 2021. | **Expense** | **Toledo, OH** | **Providence, RI** | |----------------------|-----------------|---------------------| | Housing | $726 | $1014 | | Food | $701 | $798 | | Child Care | $1120 | $1659 | | Transportation | $1164 | $1112 | | Health Care | $895 | $793 | | Other Necessities | $576 | $731 | | Taxes | $643 | $901 | | **Monthly Total** | **$5825** | **$7008** | 1. The 2022 minimum wage in Ohio is $9.30 per hour. How many hours must each adult in the family work per month at this pay rate to earn the $5825 dollars needed to live in Toledo? Round to the nearest whole hour. Hint: 2 adults are working. 2. Repeat your calculation for Providence, knowing that the 2022 minimum wage in Rhode Island is $12.25 and the necessary income is $7008? Round to the nearest whole hour. Hint: 2 adults are working. 3. Which city is the one with a true higher cost of living compared to the state's minimum wage. 4. Now, assume that a regular work week is made of 40 hours and that there are approximately 4.3 weeks in a month. How much money must each adult earn per hour in Toledo to meet their budget assuming they work regular work weeks during a month? How many times more than the minimum wage in Ohio is the hourly rate you calculated? Assume both adults have equal incomes. Round to the nearest cent.
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 5 steps

Blurred answer
Similar questions
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education