Question

David has a monthly after-tax income of $ 1430.15 1430.15 . He will be using the companies health insurance plan which costs $ 63 63 a monthand the retirement option which takes 7 7 % of his after tax income. Calculate David's Monthly Take-Home pay.

Answer 1

$ 1267.

Explanation:

Given :

David's monthly income after tax = $ 1430.15

His health insurance cost him in a month = $ 63

Percent deducted from his income after tax for his retirement option is = 7%

Therefore money left after retirement option deduction is :

$ 1430.15 - 7% of $ 1430.15

= 1430.15 - 100.11

= $ 1330.04

= $ 1330 (aprrox)

Money deducted from this amount for his health insurance plan

= $ 1330 - $ 63

= $ 1267

Therefore, David's monthly take home pay is $ 1267.