Problem

A framer earns a weekly gross pay of $\$ 815.75$. She pays union dues at a rate of $3 \frac{1}{2} \%$, employment insurance at a rate of $4 \frac{1}{4} \%$ and income tax at a rate of $16 \%$ of her gross pay. What is the dollar amount of each deduction and her take home pay? (5 marks)

Answer

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Answer

Take-home pay: \(815.75 - 193.74 = \boxed{\$622.01}\)

Steps

Step 1 :Let's find the dollar amount of each deduction:

Step 2 :Union dues: \(815.75 \times 3.5\% = 815.75 \times 0.035 = \$28.55\)

Step 3 :Employment insurance: \(815.75 \times 4.25\% = 815.75 \times 0.0425 = \$34.67\)

Step 4 :Income tax: \(815.75 \times 16\% = 815.75 \times 0.16 = \$130.52\)

Step 5 :Total deductions: \(28.55 + 34.67 + 130.52 = \$193.74\)

Step 6 :Take-home pay: \(815.75 - 193.74 = \boxed{\$622.01}\)

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