Question

Chin needs more money in his net pay each month, so he plans to reduce his federal income tax deduction from 12% to 11%. His monthly gross pay is $3,500, and his deductions before the change are listed in the table.

Deduction
Dollar Amount
Federal Income Tax
$420
State Income Tax
$95
Social Security
$89
Medicare
$40

What will be his new monthly net pay? Round your answer to the nearest dollar.
$2821
$2857
$2860
$2891

Answer 1

Chin's new monthly net pay will be D. $2,891

Answer 2

$2860

Step-by-step explanation:

Given that,

Monthly gross pay of Chin is $3,500

Total taxes are as follows :

Federal Income Tax = $420

(He plans to reduce his federal income tax deduction from 12% to 11%.)

`=420\cdot(12)/(100)-420\cdot(11)/(100)\\\\=\$415.8`

State Income Tax = $95

Social Security = $89

Medicare = $40

New monthly net pay = Monhly gross-sum of texes

= $3,500-($415.8+$95+$89+$40)

= $2860.2

or

=$2860

Hence, his new monthly net pay is $2860.