Question

Pat earns $25,000 per year (after taxes), and Pat's spouse, Chris, earns $35,000 (after taxes). They have two pre-school children. Childcare for their children costs $12,000 per year. Pat has decided to stay home and take care of the children. Pat must:
A. value spending time with the children by more than $25,000.

B. value spending time with the children by more than $12,000.

C. value spending time with the children by more than $13,000.

D. value spending time with the children as much as does Chris

Answer 1

Answer:

C. Value spending time with the children by more than $13,000.

Explanation:

Given that Pat earns $25,000 per year after taxes and the childcare costs $12,000 per year, the value of spending time with with the children will be more than $13,000. If Chris becomes a stay at home parent, the value would have been $23,000 as $12,000 will be paid for the childcare. The amount is calculated by finding the difference between the earnings and childcare costs.