question 2 (1 point) ✓ saved a recent college...
question 2 (1 point) ✓ saved a recent college graduate starts a new job as a middle - school teacher. his yearly salary is $52,500. his employer withholds $7872 in state and federal income taxes and $4008 in fica taxes throughout the year. he has the following monthly costs: transportation is $575, cell phone bill is $80, student lean payment is $312, retirement fund contribution is $400, and rent is $950. he is using the average monthly cost for each of the following to gain an idea of other monthly expenses: utilities are $165, home internet is $75, and groceries are $350. a. determine the monthly net pay amount. $3,385 a✓ b. determine how much money is left each monthly for discretionary spending after all necessities are accounted for. $478 a✓
Answer
# Explanation:
## Step1: Calculate annual net - pay
First, find the total annual deductions. The total annual deductions are the sum of state and federal income taxes ($7872) and FICA taxes ($4008), so $7872 + 4008=11880$. The annual salary is $52500$. The annual net - pay is $52500−11880 = 40620$.
## Step2: Calculate monthly net - pay
Divide the annual net - pay by 12. So, $\frac{40620}{12}=3385$.
## Step3: Calculate total monthly necessities cost
Sum up all the monthly necessity costs: transportation ($575), cell phone bill ($80), student loan payment ($312), retirement fund contribution ($400), rent ($950), utilities ($165), home internet ($75), and groceries ($350). $575 + 80+312 + 400+950+165+75+350 = 2807$.
## Step4: Calculate monthly discretionary spending
Subtract the total monthly necessities cost from the monthly net - pay. $3385−2807 = 478$.
# Answer:
a. $3385
b. $478