Question

Jason earns $670 weekly at his job at a local newspaper. Calculate the weekly taxes for Jason’s salary.If Jason wishes to purchase a car where his payments are no more than 15% of his take home pay for amonth, what is the maximum monthly car payment he can afford? Assume that the tax rate is 27.2%and that a month has 4 weeks.

Answer 1

Given that,

Jason earns $670 weekly at his job at a local newspaper.

To find the weekly taxes for Jason’s salary.

tax rate is 27.2%

we get,

Weekly taxes for Jason’s salary is,

`=620*(27.2)/(100)`
`=168.64`

Weekly taxes for Jason’s salary is $168.64

Take home pay is, (per week)

`=670-168.64`
`=501.36`

Take home oay for a month is,

`=4*501.36`
`=2,005.44`

Take home pay for a month is $2,005.44.

Given that,

If Jason wishes to purchase a car where his payments are no more than 15% of his take home pay for a month.

15% of his take home pay for a month is,

`=(15)/(100)*2,005.44`
`=300.816`

we get that, Jason wishes to purchase a car where his payments are no more than $300.816.

Therefore, the maximum monthly car payment he can afford is $300.816.