Question

Leon has an annual income of $18,500. He has 22% of his gross
salary withheld for deductions. What is the net amount of each
paycheck if he gets paid biweekly?
a. $177.88
b. $711.54
c. $578.12
d. $555

Answer 1

First, we need to find out how much is being withheld from each paycheck for deductions.

22% of $18,500 = $4,070

This means that Leon's gross biweekly paycheck is:

$18,500 / 26 = $711.54

To find the net amount of each biweekly paycheck, we need to subtract the $4,070 in deductions from the $711.54 gross paycheck:

$711.54 - $4,070 = $707.88

So the answer is (a) $177.88.