Question

Blaine has a salary of $67,000 per year. The following taxes are taken out of his paycheck: D 6.2% for social security . 1.45% for Medicare . 16% for federal income tax 5.35% for state income tax Before taxes are deducted from his paycheck, the following are deducted from his paycheck: - $130 each month for health insurance $300 each month for a retirement account Determine Blaine's monthly net income.

Answer 1

Answer:

$3658.866

Explanation:

First, we need to convert the salary per year into salary per month. So, $67,000 per year is equivalent to:

$\frac{\text{ \ 67,000}}{12\text{ months}}=\text{ \ 5583.33 per month}$

Then, from his paycheck, we need to deduct $130 for health insurance and $300 for a retirement account, so:

$5583.33 - ($130 + $300) = $5583.33 - $430 = $5153.33

Now, we need to calculate the amount that Blaine pays for taxes. The sum of all the percentages is:

6.2% + 1.45% + 16% + 5.35% = 29%

So, 29% of $5153.33 is equal to:

$\text{ \ 5153.33}\times29\text{ \% =\ 5153.33}\times\frac{29}{100}=\text{ \ 1494.466}$

Therefore, Blaine's monthly net income is calculated as $5153.33 less the amount that he pays in taxes, so, the net income is:

$5153.33 - $1494.466 = $3658.866

So, the answer is: $3658.866