Question

Nancy Gerald, production control manager at The Open-Pit Furnace Co., has a total of $497.25 deducted from her monthly paycheck for Social Security and Medicare taxes. What is her monthly salary?

Answer 1

Missing portion in question:

Tax rate for Social Security and Medicare for the company The Open-Pit Furnace Co. is not given in the question. Usually these taxes apply on following rate:

Social Security Tax Rate = 6.2%

Medicare Tax Rate = 1.45%

Answer:

$6,500

Step-by-step explanation:

Total deducted amount from her salary was $497.25 i.e. some of the taxes for social security and medicare. If these taxes are on the rate mentioned above, total salary can be calculated.

Total deduction = (6.2%+1.45%) of the salary

497.25=7.65% of the salary

Let the total salary = $x

$497.25=\frac{7.65}{100}*x\\=\frac{497.25*100}{7.65} \\=\frac{49725}{7.65} \\=6500$

So, her monthly salary is $6500