Question

Sam's employer deducts 20% in payroll and state taxes from his base salary before writing his paycheck. Sam's monthly pay check is 1,600.
Part A: what is Sam's salary before the deductions for payroll and state taxes?
Part B: Sam puts 1/5 of his pay check into a saving account each month. How much does he save each month?
Part C: Next month Sam's employer is Changing it's pay scale, and Sam's base salary will change by -8%. His employer with still deduct 20% for taxes. What will be his salary before deduction and how much will his paycheck be next month?
Show your work

Answer 1

(A) Because the employer has already deducted 20% to the value of the money, 1,600 is already the 80%. If we let x be value before the deduction, the equation would be,
                                       1,600 = 0.80x
The value of x is $2000. 

(B) We multiply 1/5 by 1,600 giving us an answer of $320.

(C) As an original payment of $2000 be deducted by 8%, the new salary would be $1840. 20% of this value is $368. Therefore, his new paycheck next month will be $1472.2.