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You have a career and are given a salary of 45,000. If you have to pay 15% of your income in Federal and State taxes, how much money do you make after paying taxes? What is your monthly income?

1 Answer

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Answer:

  • after taxes: $38,250
  • monthly: $3,187.50

Explanation:

Your after-tax income is the gross pay less the amount that is paid to taxes. The monthly income is 1/12 of the annual amount.

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The tax is the taxed amount multiplied by the tax rate.

taxes = $45,000 × 15% = $6,750

The after-tax income is the income less the taxes:

after-tax income = $45,000 -6,750 = $38,250

The monthly income is 1/12 of this amount:

monthly income = annual income/12 = $38,250/12 = $3,187.50

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