Question

Sam receives a weekly paycheck. Here’s a copy of one of his pay statements. If there are 4 paydays per month, what is Sam’s monthly net income? $      ????          Pay statement for Sam Nelson for pay period January 6 to 19, 2014, with all amounts in dollars and cents - gross pay 865 dollars and 00 cents, deductions (federal income tax 125 dollars and 75 cents, Social Security tax 36 dollars and 33 cents, Medicare tax 12 dollars 54 cents, Medical insurance premium 36 dollars and 00 cents), total deductions 210 dollars and 62 cents, net pay 654 dollars and 48 cents.

Answer 1

In this problem, since we are trying to find Sam's monthly net income, we just need to multiply his weekly net income (which is after all the deductions come out) by how many times he gets paid! Because he gets paid 4 times, we just need to multiply $654.48 by 4! The you should get an answer of $2617.92, which is Sam's monthly net income!