Question

Maxine moved out of state and just got her first job, paying $21.50 per hour. She works 40 hours per week and gets paid every 2 weeks. She pays 4% state income tax. How much does Maxine have remaining after state income tax is deducted from her paycheck?

Answer 1

Maxine has $1,651.20 remaining after state income tax is deducted from her paycheck.

Explanation:

If Maxine earns $ 21.50 an hour and works 40 hours per week, each week she earns a total of $ 860 (40 x 21.5). Since she collects every 2 weeks, her pre-tax salary is $ 1,720 (860 x 2). But the state discounts an income tax of 4%, with which the money that she effectively receives every two weeks is $ 1,651.20 (1720 - (1720 x 0.04).