Computed value

Computation formula

Issue

Capitalized cost of living at rate of 8% Continuous compounding

H(p) = 12 × 475 [e17×0.08−1]/0.08

$206.354

Yearly cost of labor of teenager

W = s × H(p) ≈ p × H(p)

$16.598

Monthly cost of labor

MCL = W/12

$1,.76

Computed hourly cost of labor (HCL)

HCL = MCL/176

$7.81

The legal HCL increased by the employer pension

7.25 × 1.062

$7.70

Family (2 + 2) revenues

Doubled minimum wage

2 × MCL

$2.752

Minus contribution for pension fund (20%) and health care (10%)

0.3 × 2.752USD

$1.926

Cost of living per person

1926 USD/4

$481.60

Detriment fund for 1 person after 43 years capitalized at rate of 3%

12 × 275.2 × [(1+0.03)47−1]/0.03

$331.549