Question

Cedric's monthly net income is $3,788. The following is withheld from him monthly gross income: 6.2% for social security • 1.45% for Medicare 16% for federal income tax 6.15% for state income tax Determine Cedric's monthly gross income. Round your answer to the nearest cent.

Answer 1

EXPLANATION

Let's see the facts:

Income = $3,788

Withheld:

6.2% for social security

1.45% for medicare

16% for federal income tax

6.15% for state income tax

Now, with this given data, we can assevere that the gross income is obtained by multiplying the net income by the sum of percentages as follows:

Sum of contributions: 6.2+1.45+16+6.15 = %29.8

So, we know that we must ad 29.8% more,in decimal form, to the net income in order to get the gross income.

The gross income is:

Gross income= 3,788x 1.298 [Because 1 represents 100% and 0.298 represents %29.8]

Gross income = $4,916.82