If 24% of your monthly pay is withheld for federal income taxes and another 8% is withheld for Social Security, state income tax, and other miscellaneous items, leaving you with $992.50 a month in take-home pay, then the amount you earned before the deductions were removed from your check is given by the equation . Solve this equation to find your gross income to the nearest dollar.
A)$1,310 per month
B)$1,025 per month
C)$1,460 per month
D)$1,182 per month
E)$1,577 per month

Question

If 24% of your monthly pay is withheld for federal income taxes and another 8% is withheld for Social Security, state income tax, and other miscellaneous items, leaving you with $992.50 a month in take-home pay, then the amount you earned before the deductions were removed from your check is given by the equation  . Solve this equation to find your gross income to the nearest dollar.
A)$1,310 per month 
B)$1,025 per month 
C)$1,460 per month 
D)$1,182 per month 
E)$1,577 per month

Quizplus · Accepted Answer

Let's call the gross monthly income "x."
We know that 24% is withheld for federal income taxes, which we can write as 0.24x.
We also know that 8% is withheld for Social Security, state income tax, and other miscellaneous items, which we can write as 0.08x.
So the equation we can set up is:

x - 0.24x - 0.08x = $992.50

Simplifying this equation, we get:

0.68x = $992.50

Dividing both sides by 0.68, we get:

x = $1,460.29

Rounding to the nearest dollar, we get:

x = $1,460

So the gross income before deductions were taken out is $1,460 per month. Therefore, the best choice is C.

If 24% of Your Monthly Pay Is Withheld for Federal