Final answer:
After computing deductions for FICA, federal, and state withholdings, the amount remaining for housing and fixed expenses from a gross pay of $2,759.00 is $2,023.73, which does not match any of the provided answer choices.
Step-by-step explanation:
The question asks how much money is allowed for housing and fixed expenses after involuntary deductions from a gross pay of $2,759.00. To calculate this, we begin by computing each deduction:
- FICA (Social Security + Medicare) = 7.65% of $2,759
- Federal withholding = 12% of $2,759
- State withholding = 7% of $2,759
Adding these deductions together gives:
- FICA: $2,759 * 0.0765 = $211.06
- Federal withholding: $2,759 * 0.12 = $331.08
- State withholding: $2,759 * 0.07 = $193.13
Total deductions: $211.06 + $331.08 + $193.13 = $735.27
Subtracting the total deductions from the gross pay gives the amount available for housing and fixed expenses:
$2,759.00 - $735.27 = $2,023.73
However, none of the provided answer choices matches the calculated amount, indicating a possible error in the question or the answer choices.