Question

Charlotte makes $22.25 per hour and is paid for a 40-hour work week. She pays 15% federal income tax, 6.2% social security, 1.45% Medicare, and she lives in a state with no state income tax. She pays 3% of her gross income for retirement and pays $45.00 per month for life insurance. What is her gross annual salary?

Answer 1

Charlotte makes $22.25 per hour for a 40-hour work week, resulting in weekly earnings of $890. Her gross annual salary is the weekly amount multiplied by 52 weeks, yielding a total of $46,280.

Step-by-step explanation:

Charlotte's gross annual salary is the total amount of money she earns in a year before any deductions or taxes are taken out. Since Charlotte earns $22.25 per hour and works a 40-hour week, we first calculate her weekly earnings by multiplying her hourly rate by the number of hours worked per week.

1. Weekly earnings = $22.25 per hour × 40 hours per week = $890.
2. Then, to find her gross annual salary, we multiply her weekly earnings by the number of weeks in a year: Gross annual salary = weekly earnings × 52 weeks/year.
3. Gross annual salary = $890 × 52 = $46,280.

So, Charlotte's gross annual salary is $46,280.