Final answer:
To find the Net Annual Income, subtract all deductions from the gross income; divide this by 12 for the monthly income. For Peter's best option, compare monthly income against his budgeted monthly expenses.
Step-by-step explanation:
Calculating Net Annual Income and Monthly Income
To calculate the Net Annual Income for each job position, you must subtract taxes, social security, and medicare from the gross annual income. Once you have the net annual income, you can divide it by 12 to get the monthly income.
Example Calculation:
Assume the gross annual income for a position is $60,000, taxes are 20%, social security is 6.2%, and medicare is 1.45%. The calculations would be:
- Total deductions = 20% + 6.2% + 1.45% = 27.65%
- Net Annual Income = $60,000 - (27.65% of $60,000)
- Net Annual Income = $60,000 - $16,590 = $43,410
- Monthly Income = Net Annual Income / 12
- Monthly Income = $43,410 / 12 ≈ $3,617.50
Choosing the Best Option for Peter
To determine the best option for Peter, one would need to consider Peter's budgeted monthly expenses alongside the monthly income from various job positions to see which option feasibly covers his expenses and also aligns with his career goals and personal circumstances.