Question

Coby's gross income was $93,000 last year. If he had $1646.92 withheld for federal income tax from each of his monthly paychecks, what percentage of his gross income was withheld for federal income tax last year? Give your answer to the nearest hundredth of a percent.

Answer 1

The solution:

Given:

$\begin{gathered} Last\text{ year gross income}=\text{\ }93,000 \\ Monthly\text{ income tax withheld}=\text{\ }1646.92 \end{gathered}$

This means that:

$Last\text{ year total income tax withheld}=12\times1646.92=\text{ \ }19763.04$

To find the percentage of Coby's gross income for last year, we have:

$Gross\text{ income percent}=\frac{19763.04}{93000}\times100=21.25\text{\%}$

Therefore, the correct answer is 21.25%