Question

Net pay is the difference between a worker’s gross income and his or her deductions. A person’s gross income for the year was $65,000 and their total deductions were $12,860. What was their net pay for the year? Use the formula P = I - d, where P is the net pay, I is the gross income and d is the deductions.

a. $53,140 is the net pay
b. $77,860 is the net pay
c. $72,860 is the net pay
d. $52,140 is the net pay

Answer 1

Gross pay is the amount of money your employees receive before any taxes and deductions are taken out. For example, when you tell an employee, “I’ll pay you $50,000 a year,” it means you will pay them $50,000 in gross wages.
Net pay is the amount of money your employees take home after all deductions have been taken out. This is the money they actually get on payday.

Answer 2

We are given that I = $65,000 and d = $12,860. Using the formula, we get:

P = 65000 - 12860 = 52140

So, the person's net pay is $52,140, and the answer is D.

Hope this helps.