Final Answer:
After deducting 21.4% for taxes from the monthly salary of $6,920, the employee will receive a net monthly salary of $5,450.88.
Step-by-step explanation:
To calculate the net monthly salary, we need to subtract the percentage deducted for taxes from the gross monthly salary. In this case, 21.4% of $6,920 is deducted. To find this deduction, we use the formula:
Deduction
=
Percentage
×
Gross Salary
100
Deduction=
100
Percentage×Gross Salary
Substituting in the values, we get:
\text{Deduction} = \dfrac{21.4\% \times $6,920}{100}
Solving this gives us the deduction amount, which is approximately $1,479.28. To find the net monthly salary, we subtract this deduction from the gross salary:
Net Salary
=
Gross Salary
−
Deduction
Net Salary=Gross Salary−Deduction
Substituting in the values:
\text{Net Salary} = $6,920 - $1,479.28
The result is the net monthly salary of $5,450.88.
In conclusion, after deducting 21.4% for taxes from the employee's gross monthly salary of $6,920, the net monthly salary amounts to $5,450.88. This calculation ensures clarity on the amount an employee takes home after tax deductions, facilitating accurate financial planning.