Question

Chin needs more money in his net pay each month so he plans to reduce his federal income tax deduction from 12% to 11%. His monthly gross pay is $3,500, and his deductions before the change are listed in the table.

Deduction
Dollar Amount
Federal Income Tax
$420
State Income Tax
$95
Social Security
$89
Medicare
$40

What will be his new monthly net pay? Round your answer to the nearest dollar.
A.$2821           

B.$2857C.$2860 D.$2891

Answer 1

D

Step-by-step explanation:

$2,891

Answer 2

The correct answer is D. $2891. That is calculated by having the following:
Chin's gross pay minus the deductions. However, the Federal Income tax will only be $385 instead of $420 since we are reducing her tax from 12% to 11%.
So, $3500 - (385+95+89+40) = $2891.