Daniel has a choice between working for $7 per hour, or not working at all. If Daniel chooses not to work, they are guaranteed annual benefits of $14000. Daniel also has a choice to work up to 2000 hours per year, and for every 1 dollar earn working, they lose 1 dollar in government benefits. Based on this information, fill in the columns below.
Hours Worked | Earnings from Work | Government Benefits | Total Income
-------------|--------------------|---------------------|--------------
0 | $0 | $14,000 | $14,000
1 | $7 | $13,999 | $14,006
2 | $14 | $13,998 | $14,012
... | ... | ... | ...
1999 | $13,993 | $7 | $14,000
2000 | $14,000 | $0 | $14,000
Based on the information provided, we can calculate the total annual income for Daniel by comparing the two choices.
Choice 1: Not working
Annual benefits guaranteed = $14,000
Choice 2: Working
Hourly wage = $7
Number of hours worked per year = up to 2000
In this case, for every dollar earned working, Daniel loses one dollar in government benefits. Therefore, the net income from working would be calculated as follows:
Net income = (Hourly wage × Number of hours worked per year) - Amount lost in government benefits
Now let's fill in the columns based on the given information:
| Number of hours worked per year | Annual income from working | Net income from working |
|--------------------------------|----------------------------|------------------------|
| 0 | $0 | $0 |
| 100 | $700 | $600 |
| 500 | $3,500 | $3,000 |
| 1000 | $7,000 | $6,000 |
| 1500 | $10,500 | $9,000 |
| 2000 | $14,000 | $12,000 |
Note: The net income from working is calculated by subtracting the amount lost in government benefits from the annual income earned from working.