Question

Lucia contributes 6% of her salary to a payroll savings plan. If herannual salary is $14,500, how much is withheld each month for savings?a. $72.50b. $ 870c. $16.73d. $ 7.25

Answer 1

The first thing we have to do is divide Lucia's annual salary to find out how much she earns monthly

`(14,500)/(12)=1,208.33`

Lucia earns $1,208.33 each month

Now the easiest way to get the percentage is multiplying by the percentage value and dividing by 100

`1,208.33\cdot(6)/(100)=72.499\approx72.50`

Lucia saves $72.50 a month