Question

You are debating about whether to buy a new computer for $800.00 or a refurbished computer with the same equipment for $640.00. If you are paid $10.00/hour and your deductions are FICA (7.65%), federal tax withholding (12%), and state tax withholding (8%), how many hours do you have to work to pay for the refurbished computer?
answer choices:
98 hours

89 hours

111 hours

Answer 1

Total earnimgs per hour=10$

After deduction

• Percentage=7.65+8+12=27.65%

Total earnings

• 10-27.65%×10
• 10-0.2765(10)
• 10-2.765
• 7.335$

Total hours:-

• 640/7.335
• 87.25

Approximately 89 hours