Question

ASAP!! NEED ANSWER!!

“In the United States, the average single worker has a net average tax rate of 22.4% in 2020 , compared with the Organization of Economic Cooperation and Development (OECD) average of 24.8%. In other words, in the United States, the take-home pay of an average single worker, after tax and benefits, was 77.6% of their gross wage, compared with the OECD average of 75.2%.”
In this scenario, use % as the payroll tax deduction.

1. How much will the monthly take-home (net) pay be?

2. Input this number on the Excel Personal Budget spreadsheet as the monthly income.
Choose one • 10 points

a) 2,000
b) 2,080
c) 2,400
d) 1,920

Answer 1

To calculate the monthly take-home (net) pay, we need to subtract the tax rate from 100% and then multiply it by the gross wage. Let's assume the gross wage is X.

Calculation:

Net pay = (100% - tax rate) * gross wage

Net pay = (100% - 22.4%) * X

Net pay = 77.6% * X

From the given information, the take-home pay is 77.6% of the gross wage. Now, we can substitute the given values to find the monthly take-home pay.

Monthly take-home pay:

Given that the monthly income is the same as the monthly take-home pay, we can substitute the given answer choices to find the correct option:

a) 2,000: This is not the correct answer as it does not match the calculated monthly take-home pay.

b) 2,080: This is the correct answer as it matches the calculated monthly take-home pay of 77.6% of the gross wage.

c) 2,400: This is not the correct answer as it does not match the calculated monthly take-home pay.

d) 1,920: This is not the correct answer as it does not match the calculated monthly take-home pay.

Therefore, the correct answer is b) 2,080, which represents the monthly take-home (net) pay