Question

Danny makes $8.75 per hour and works 32 hours per week but 18 percent is withheld from each paycheck for taxes. If Danny's monthly expenses total $595 per month and he is able to save the rest, approximately how much could Joe save in one year?

Answer 1

First we need to find Danny's yearly net income or how much he makes after taxes. $8.75 per hour. He works 32 hours a week. Multiply those together and we get $280 per week. Now divide by seven for daily income. That results in $40 a day. Then multiply by 365 to get $14600 a year. Now to account for taxes. 18% is withheld for taxes which means 82% is not. $14600 multiplied by .82 is $11972, and that's our net income.

Now we need to subtract expenses. $595 a month is the same as $7140 a year. Subtract that from $11972 and we get $4832 left over, and that's our answer.

Answer 2

the answer should be $4799.20