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Michael makes an annual gross salary of $120,500. He pays 33% in taxes annually. What is his annual net pay?

1 Answer

3 votes

Answer: $80,735

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Work Shown:

33% = 33/100 = 0.33

33% of 120,500 = 0.33*(120,500) = 39,765

Michael pays $39,765 in taxes

This makes his net pay to be 120,500-39,765 = 80,735 dollars.

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A shortcut is to compute

0.67*(120,500) = 80,735

The 0.67 refers to the fact that if he pays 33% of his gross income, then he keeps the remaining 100% - 33% = 67% of it.

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