Question

Irena's net pay for her pay period was $1,125. Twenty-eight percent of her gross pay was withheld for taxes, and 12% was taken out for voluntary deductions. How much was Irena's gross pay?

Answer 1

Irena's net pay of $1,125 represents 60% of her gross pay after a total of 40% deductions for taxes and other voluntary contributions. To calculate her gross pay, divide the net pay by 60% (or 0.60), which results in a gross pay of $1,875.

Step-by-step explanation:

To find Irena's gross pay, we need to reverse the deductions that were made. We know Irena's net pay is $1,125, which is what remains after 28% was withheld for taxes and an additional 12% for voluntary deductions. This means that the deductions total 40% of her gross pay (28% + 12%). The remaining 60% (100% - 40%) of her gross pay is what constitutes her net pay.

Using algebra, we can set up the equation like this:

• Net Pay = Gross Pay - Deductions
• $1,125 = 0.60 × Gross Pay
• Gross Pay = $1,125 / 0.60

When we solve for the Gross Pay:

• Gross Pay = $1,125 / 0.60
• Gross Pay = $1,875

Therefore, Irena's gross pay was $1,875 before any deductions.