Question

You or your parents are paid 13.75/hr and your deductions are FICA (7.65%), federal tax withholding (10%), and state tax withholding (7.5%). You or your parents rent is $875.00/month. How many hours must be worked to pay the rent each month?

Answer 1

Answer:

you or your parents must be work 85 hours each month to pay the rent.

Step-by-step explanation:

You or your parents are paid per hour = $13.75

Deductions on FICA = 7.65% of 13.75

                                  = 0.0765 × 13.75  =  $1.051875

Federal Tax               = 10% of 13.75

                                  = 0.10 × 13.75  =  $1.375

State tax                    = 7.5% of 13.75

                                  = 0.075 × 13.75 = $1.03125

Total deductions = 1.051875 + 1.375 + 1.03125 = 3.458125

After deductions take out pay/hour = 13.75 - 3.458125 = $10.291875

If the rent is $875/month

Therefore 875 ÷ 10.291875 = 85.018521 rounded to 85 hours.

you or your parents must be work 85 hours each month to pay the rent.

Answer 2

You lose 25.15% of your monthly wage.

You do
13.75 / 100 then multiply by 7.65% and repeat this with 10% and 7.5% and you'll get your money per hour with deductions

This should be $10.295

Then you do $875.00 / $10.295 which should be 84.99 hours

However if you don't use the reductions and taxes it should be around 63.63 hours