Question

Aldo gets paid biweekly. His gross pay for each pay period is $850.He has 16% withheld for taxes and 7% withheld for personal deductionsWhat is the amount of his annual net pay?a. $8,160b. $17,340c. $17,017d. $17,680

Answer 1

First, we compute the 16% of $850 and the 7% of $850:

`\begin{gathered} 850(0.16)=136 \\ 850(0.07)=59.5 \end{gathered}`

Then, after deductions, Aldo gets paid $850-$136-$59.5=$654.5 biweekly. Therefore, since he gets paid biweekly we multiply $654.5 per 26 and get that Aldo earns $17017 per year.

Answer: Option C.