Question

You are debating about whether to buy a new computer for $800. 00 or a refurbished computer with the same equipment for $640. 0. If you are paid $10. 00/hour and your deductions are fica (7. 65%), federal tax withholding (12%), and state tax withholding (8%), how many hours do you have to work to pay for the refurbished computer?.

Answer 1

To pay for the refurbished computer, you would need to work approximately 88.50 hours.

Step-by-step explanation:

To determine the number of hours you need to work to pay for the refurbished computer, we need to calculate the total amount deducted from your earnings and then divide the price of the computer by the remaining amount.

First, calculate the total deductions by adding up the percentages: FICA (7.65%) + Federal tax withholding (12%) + State tax withholding (8%) = 27.65%.

Next, calculate the remaining amount by subtracting the total deductions from your hourly pay rate:

$10.00/hour - (27.65% * $10.00/hour) = $7.23/hour

Finally, divide the price of the refurbished computer by the remaining amount per hour: $640.00 / $7.23/hour ≈ 88.50 hours.

Therefore, you would need to work approximately 88.50 hours to pay for the refurbished computer.