Question

Derek's gross pay is $780.50. How much will he pay in State income tax this pay period if the rate is 6.5%?

a) Derek will pay $51.52 in State income tax this pay period.
b) Derek will pay $50.78 in State income tax this pay period.
c) Derek will pay $52.05 in State income tax this pay period.
d) Derek will pay $51.28 in State income tax this pay period.

Answer 1

Derek's State income tax from his gross pay of $780.50 at a 6.5% rate is calculated by multiplying 780.50 by 0.065, resulting in $50.7325 or $50.73 when rounded to the nearest cent.

Step-by-step explanation:

To calculate Derek's State income tax, we need to apply the 6.5% income tax rate to his gross pay of $780.50. To do this, multiply 780.50 by 0.065 (6.5% expressed as a decimal).

The calculation is as follows:

780.50 × 0.065 = $50.7325

Rounding this to the nearest cent, Derek will pay $50.73 in State income tax this pay period, which is not exactly one of the options provided. The closest option is $50.78 (b), which might indicate a slight discrepancy due to the rounding of the cent value.