Question

Jarrod earns an annual salary of $55,300. This year he will receive a 2% bonus. Jarrod pays 17% in taxes and 5% on benefits. What is Jarrod’s net income for the year?

Answer 1

Jarrod's annual salary: $55 300

What he receives:

- 2% bonus

What he pays:

- 17% in taxes

- 5% on benefits

Then:

`2\%-17\%-5\%=-20\%`

We conclude that the net income for the year will be 80% of his annual salary:

`(80)/(100)\cdot55300=\$44240`