Question

Jane’s monthly income in the year 2010 was $48,200, where 14% of her salary was withheld for income tax. In the year 2011, her monthly salary was $51,800, where 16% of her income was withheld for income tax. What was her average take home pay during the years 2010-2011?

Answer 1

The average take home pay per month during the years 2010-2011 was $42,482.

Explanation:

Jane’s monthly income in the year 2010 was $48,200, where 14% of her salary was withheld for income tax.

So, for the year 2010, the amount withheld was =
`0.14*48200=6748` dollars.

Her take home salary was =
`48200-6748=41452` dollars

This is the monthly pay so her yearly pay is
`12*41452`=$497424

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In the year 2011, her monthly salary was $51,800, where 16% of her income was withheld for income tax.

So, for the year 2011, the amount withheld was =
`0.16*51800=8288` dollars.

Her take home salary was =
`51800-8288=43512` dollars

Her yearly pay is
`12*43512`=$522144

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So, her average take home pay per month during the years 2010-2011 was:

`(497424+522144)/(24)` = $42,482.

Answer 2

In 2010: Take home salary = (1-0.14)*(48200*12) = $497,424
In 2011: Take home salary = (1-0.16)*(51800*12) = $522,144

Average take home per month in 2010-11 = (497,424+522,144)/24 = $42,482