Answer:
$119.58
Explanation:
We expect Carol's annual tax bill to be the difference of her pay and exemption, multiplied by the tax rate:
annual tax = ($45,000 -4,000) Ă— 0.035 = $1,435
Then her monthly tax bill will be 1/12 of this:
monthly state tax = $1435/12 = $119.58
Carol pays $119.58 in state taxes each month.