Question

Ali takes a full-time position as a makeup artist in Atlanta. Her starting salary is $29,000. Her taxes are 28%. What is her net monthly income?
a. $2,416
b. $3,840
c. $2,088
d. $1,740
I couldn't find the answer to this question when I really needed it, so I did the work myself and got D as the answer. I ended up getting it right because you divide 29,000 by 12, then multiply the answer (2416) by 28%, which gives you the answer, D, 1740. Hope that helped!

Answer 1

Answer:

  d.  $1,740

Step-by-step explanation:

The annual after-tax salary is found by subtracting the tax from the salary. The tax is found by multiplying the tax rate by the salary. The monthly after-tax income is 1/12 of the annual after-tax income.

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steps

  annual tax = 0.28 × $29,000 = $8,120

  annual take-home pay = $29,000 -8,120 = $20,880

  monthly take-home pay = annual pay / months per year

  = $20,880 / 12 = $1,740 . . . . net monthly income

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Additional comment

The net pay will be (1 - 0.28) = 0.72 times the nominal salary. The monthly pay will be 1/12 of the annual pay. These combined factors give a monthly net pay of (0.72)(1/12) = 0.06 times the annual pay.

  0.06 × $29000 = 6×$290 = $1740