Question

Mm 7 You have a part-time job that pays $4.75/hr with tips averaging $4.50/hr. Your deductions are FICA (7.65%), federal tax withholding (12.5%), and state tax withholding (6.85%). You work 20 hours per week.

3. You want to save $40.00/wk, how much is left of your discretionary income per week? Assume that all of the income from your part-time job is discretionary. (1 point) $ wk

4. You decide to save 15% of your realized income. How much do you save per month? (1 point) $ /month​

Answer 1

95.05

81.03

Explanation:

Answer 2

Gross weekly income:

• 20(4.5 + 4.75) = $185.00

Deductions:

• 180(12.5 + 7.65 + 6.85)/100 = $48.60

Net weekly income:

• 185 - 48.60 = $136.40

3.

Saving $40, the amount left per week:

• 136.40 - 40 = $96.40

4.

Saving 15%, the amount saved per month (4 weeks):

• 136.40*0.15*4 = $81.84