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 new computer?
111 hours

98 hours

87 hours

Answer 1

Total deduction

• 7.65+12+8
• 19.65+8
• 27.65%

Now

Earnings after deduction

• 10-10(0.2765)
• 10-2.765
• 7.335$

Total hours:-

• 640/7.335
• 87.25
• 87hours