Question

You work at the peacock blue store 40 hours/week over five days at a rate of $10.25/hour. Deductions are fica (7.65%), federal withholding (15%), and state withholding (10%). Your expenses are transportation at $5.25/day, lunch at $3.85/day, and black slacks required for work at $19.95. How much is your discretionary income for one week?

Answer 1

Weekly salary = $40\times10.25=410$

Deductions are as follows:

FICA = 7.65% , amount becomes $0.0765\times410=31.365$

Federal withholding = $0.15\times410=61.5$

State withholding = $0.10\times410=41$

Hence, total deductions are = $31.365+61.5+41=133.865$

Daily transportation and lunch costs $5.25+3.85=9.1$ per day

Weekly expense for food and transportation = $9.1\times5=45.5$

Cost of black slacks = $19.95

So, total expenses including deductions are = $133.865+45.50+19.95=199.315$

Now, the weekly discretionary income is =$410-199.315$ = $210.685 ≈ $210.69

Hence, the answer is $210.69.

Answer 2

210.69 is the answer.

Sorry for not explaining my work, in a bit of a hurry. I had this question back when i was in school.

Hope this helps & good luck. :)