You work at the peacock blue store 40 hours/week over five days at a rate of $10.25/hour. Deductions are fica (7.65%), federal withholding (15%), and state withholding (10%). Your expenses are transportation at $5.25/day, lunch at $3.85/day, and black slacks required for work at $19.95. How much is your discretionary income for one week?

Respuesta :

210.69 is the answer.

Sorry for not explaining my work, in a bit of a hurry. I had this question back when i was in school.


Hope this helps & good luck. :)

Weekly salary = [tex]40\times10.25=410[/tex]

Deductions are as follows:

FICA = 7.65% , amount becomes [tex]0.0765\times410=31.365[/tex]

Federal withholding = [tex]0.15\times410=61.5[/tex]

State withholding = [tex]0.10\times410=41[/tex]

Hence, total deductions are = [tex]31.365+61.5+41=133.865[/tex]

Daily transportation and lunch costs [tex]5.25+3.85=9.1[/tex] per day

Weekly expense for food and transportation = [tex]9.1\times5=45.5[/tex]

Cost of black slacks = $19.95

So, total expenses including deductions are = [tex]133.865+45.50+19.95=199.315[/tex]

Now, the weekly discretionary income is =[tex]410-199.315[/tex] = $210.685 β‰ˆ $210.69

Hence, the answer is $210.69.

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