Mike Is Able to Complete a Tax Return in Two

question 43

Multiple Choice

Mike is able to complete a tax return in two hours earning a fee of $100. As an alternative, he could pitch in at a volunteer car wash washing four cars in one hour. His roommate Joe would take four hours to complete a tax return earning a $100 fee and also can wash four cars in one hour. Both individuals could benefit if

• A)​Mike worked on tax returns for eight hours and paid Joe $5 for each car he washed
• B)​Mike worked on tax returns for eight hours and paid Joe $10 for each car he washed.
• C)​Mike worked on tax returns for eight hours and paid Joe $15 for each car he washed
• D)​Joe worked on tax returns for eight hours and paid Mike $10 for each car he washed

---

Definitions:

Insurance Annuity

A financial product offered by insurance companies that provides regular payments to the holder for a specified period or for life in exchange for an initial investment.

Rate Of Return

The percentage of gain or loss on an investment over a specified period, representing the profitability as a ratio of original investment.

Heirs

Individuals legally entitled to receive a portion or all of a deceased person’s estate under the laws of inheritance.

Birth Rate

The annual number of births per 1,000 people in a population.