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AssignmentMultiple Choice

Budgeting and Being a Smart Consumer

Question 2 • Personal Finance - EL3403

Martin’s gross pay is $30,135 per year. His federal income tax percent that is withheld from his paycheck is 15%. The amount of money that he owes the government after federal deductions is $4,150. Which of the following is true?

Answer
A
Martin owes about $4,520 in federal taxes.
B
Martin owes about $370 in federal taxes.
C
Martin will get a refund of about $3,899.
D
Martin will get a refund of about $370.

Explanation

Martin had about $30,135 × 0.15 = $4,520 withheld from his paychecks. Since he owes $4,150, he paid about $4,520 − $4,150 = $370 more than he owes, so he will get a refund of about $370.

AI-written and checked against the verified answer.

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