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

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

Explanation:

Step1: Calculate new federal income tax

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

Step2: Calculate total deductions

Original state income tax is $95, social - security is $89, and medicare is $40. Total deductions are $385 + 95+89 + 40=609$.

Step3: Calculate new net pay

Net pay = Gross pay−Total deductions. So new net pay is $3500 - 609=2891$.

Answer:

$2891$