Drill 7 ·
Career and Income: Maren’s Two Paths is a practice drill. It contains 5 original questions created by Brian Stewart, a Barron's test prep author with over 20 years of tutoring experience.
This drill explores a career and income choice that bridges to a household financial decision and uses an invented company and original figures.
Maren Holcroft is deciding between two ways to earn a living. Path 1 is a salaried job at an established company. Path 2 is starting her own small repair business. Take-home pay is the money left after taxes and deductions, the amount that actually reaches her bank account. Maren's household goal is to cover steady monthly bills of $2,600 while saving to repay the cost of starting the business. The table compares the two paths.
Comparison of Maren's two income paths
| Factor | Path 1: Salaried job | Path 2: Own business |
|---|---|---|
| Monthly take-home pay | $3,000 | $3,600 (typical) |
| Income stability | Steady every month | Varies month to month |
| Growth potential | Small raises over time | Could grow a lot |
| Cost to start | $0 | $4,800 in tools and setup |
Question 1. According to the table, what is the typical monthly take-home pay for Path 2, starting her own business?
Explanation: The table gives Path 2 a typical take-home pay of $3,600, so C is correct. A, $3,000, is Path 1's pay. B, $2,600, is Maren's monthly bills, not pay. D, $4,800, is the cost to start the business, not monthly pay.
Question 2. The money that reaches Maren's bank account after taxes and deductions are removed is best described by which term?
Explanation: This is take-home pay (B). Take-home pay is what remains after taxes and deductions, which is what the passage defines. A, gross pay, is the amount before deductions. C, profit margin, describes a business's earnings rate, not personal pay. D, startup cost, is the money spent to begin the business, not the pay received.
Question 3. Using the typical figures, how much more take-home pay per month would Path 2 give Maren than Path 1?
Explanation: The gap is $600, so D is correct. Path 2 pays $3,600 and Path 1 pays $3,000, and 3,600 minus 3,000 equals $600. A, $400, and C, $200, do not match the $600 gap. B, $1,000, overstates the difference; it is not the result of subtracting 3,000 from 3,600.
Question 4. If Maren's most important need is making sure she can cover her steady $2,600 in monthly bills without surprises, why might Path 1 suit her better even though it pays less?
Explanation: A is correct. When covering fixed monthly bills reliably is the priority, steady income matters more than a higher but uneven paycheck, and the table shows Path 1 is steady every month while Path 2 varies. B is wrong because Path 2, not Path 1, has the higher pay. C is wrong because Path 1's cost to start is $0, the lower of the two. D describes Path 2's growth potential, not Path 1's, so it does not explain choosing Path 1.
Question 5. Maren chooses Path 2 and wants to repay the $4,800 startup cost from the extra $600 per month that Path 2 brings in over Path 1. About how many months of that extra pay would it take to cover the startup cost?
Explanation: It takes about 8 months, so B is correct. Dividing the $4,800 startup cost by the $600 extra per month gives 4,800 divided by 600, which equals 8 months. A, 4 months, would only cover $2,400. C, 12 months, would cover $7,200, more than the cost. D, 16 months, far overshoots, covering $9,600.