chin needs more money in his net pay each month, so he plans to reduce his federal income - tax deduction…

chin needs more money in his net pay each month, so he plans to reduce his federal income - tax deduction from 12% to 11%. his monthly gross pay is $3,500, and his deductions before the change are listed in the table.\n| deduction | dollar amount |\n|--|--|\n| federal income tax | $420 |\n| state income tax | $95 |\n| social security | $89 |\n| medicare | $40 |\nwhat will be his new monthly net pay? round your answer to the nearest dollar.\n$2821\n$2857\n$2860\n$2891

chin needs more money in his net pay each month, so he plans to reduce his federal income - tax deduction from 12% to 11%. his monthly gross pay is $3,500, and his deductions before the change are listed in the table.\n| deduction | dollar amount |\n|--|--|\n| federal income tax | $420 |\n| state income tax | $95 |\n| social security | $89 |\n| medicare | $40 |\nwhat will be his new monthly net pay? round your answer to the nearest dollar.\n$2821\n$2857\n$2860\n$2891

Answer

Answer:

$2860$

Explanation:

Step1: Calculate new federal income tax

New rate is 11%, gross pay is $3500$. So new federal income tax is $3500\times0.11 = 385$.

Step2: Calculate total deductions before change

Sum of original deductions: $420 + 95+89 + 40=644$.

Step3: Calculate change in federal income tax

Change is $420 - 385 = 35$.

Step4: Calculate new total deductions

New total deductions are $644-35 = 609$.

Step5: Calculate new net - pay

Net - pay = Gross pay - Total deductions. So $3500-609 = 2891$.