When you apply for a loan, you will have
to provide information about your income. Lenders will want
to know your gross annual income. This is your yearly income
before taxes and other benefits are taken out. It also includes
any other money you make from part-time jobs, overtime,
bonuses, interest you earn on your savings, and any other
kind
of income you receive regularly.
Your gross income is not the same as your
take-home pay. On your paycheck, your gross income is usually
the largest amount. Your take-home pay — what you take
home after taxes, insurance, and other costs are taken out
— is a smaller amount. You can often find that amount
in the upper right-hand corner of the pay stub.
You will often find you have to use addition,
multiplication, and division to come up with the information
you need to fill out housing-related applications. Here
are some examples of math problems related to filling in
information about your income.
Example 1:
Joe Ramirez had a gross income of $725 twice a month.
How much does he earn each month? Hint: Take the gross
pay and multiply by 2.
Answer: ______________
Example 2:
Teresa Ramirez made $8,640 annually at her job at
Grant’s Grocery. How much did she make each month?
Hint: Take the gross annual salary and divide by 12.
