Answer:
Monthly allowed in housing expenses is $609.64
Step-by-step explanation:
* Lets explain how to solve the problem
- You earning $6.80 per hour
- Your tips is $2.30 per hour
- You work 20 hours per week
- Your deductions are:
# 7.65% FICA
# 8.95% federal tax
# 6.1% state tax
* At first lets find your income in a week
∵ You earn $6.80 per hour
∵ Your tips is $2.30 per hour
∵ You work 20 hours per week
∴ Your total income per week = 6.80 × 20 + 2.30 × 20
∴ Your total income per week = 136 + 46 = 182
∴ Your total income per week = $182
* Lets calculate the net income
∵ The weekly net income for housing expenses = the weekly
total income × (1 - total deductions)
∴ The weekly net income = 182[1 - 7.65/100 - 8.95/100 - 6.1/100]
∴ The weekly net income = 182[1 - 0.227]
∴ The weekly net income = 182[0.773] = 140.686
∴ The weekly net income for housing expenses is $140.686
- Monthly allowed in housing expenses = weekly net income for
housing expenses × weeks in year/months in year
∵ The year has 52 weeks
∵ The year has 12 months
∴ Monthly allowed in housing expenses = 140.686 × 52/12 = 609.639
∴ Monthly allowed in housing expenses is $609.64
