Question

You are still debating about the two different phones. if you are paid $8.00/hour and your deductions are fica (7.25%), federal tax withholding (11%), and state tax withholding (9%), how many hours do you have to work to pay for the new phone?

Answer 1

To calculate the number of hours needed to pay for the new phone, use the formula: number of hours = (Cost of phone * 0.7275) / 8.

Step-by-step explanation:

To calculate the number of hours you need to work to pay for the new phone, you first need to calculate the total deductions from your earnings. From the given information, your deductions are as follows:

• FICA: 7.25%
• Federal tax withholding: 11%
• State tax withholding: 9%

Let's assume the cost of the new phone is X dollars. To find the number of hours you need to work, you can set up the equation:

Earnings per hour * Number of hours = Cost of phone * (1 - Total deductions)

Substituting the given values, we get:

$8 * Number of hours = X * (1 - 0.0725 - 0.11 - 0.09)

Simplifying the equation, we have:

8 * Number of hours = X * 0.7275

Dividing both sides by 8, we get:

Number of hours = X * 0.7275 / 8

So, the formula to calculate the number of hours you need to work to pay for the new phone is:

Number of hours = (Cost of phone * 0.7275) / 8