12
QuizMultiple Choice

Budgeting and Being a Smart Consumer

Question 12 • Personal Finance - EL3403

Quintina decided to increase the deduction percentage of her federal income tax rate from 14% to 16%. Quintina’s gross pay per month is $2,100. Her deductions before the change are listed in the table. DeductionDollar AmountFederal Income Tax$294State Income Tax$89Social Security $85Medicare$35 What is her new monthly net pay? Round your answer to the nearest dollar.

Answer
A
$1555
B
$1591
C
$1595
D
$1639

Explanation

Her new federal income tax deduction is 16% of $2,100, which is $336. The other deductions stay the same and total $89 + $85 + $35 = $209. Subtract all deductions from her gross pay: $2,100 − ($336 + $209) = $1,555. Her new monthly net pay is $1,555, choice A.

AI-written and checked against the verified answer.

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