Question
Your gross pay is $1,935.00. Your involuntary deductions are FICA (7.65%), federal withholding (13%), and state withholding (9%). How much are you allowed for housing and additional debt payments?
(1 point)
Responses
$541.80
$541.80
$381.16
$381.16
$490.06
$490.06
$696.60
(1 point)
Responses
$541.80
$541.80
$381.16
$381.16
$490.06
$490.06
$696.60
Answers
GPT-4o mini
To calculate how much you are allowed for housing and additional debt payments, you first need to determine your net pay after involuntary deductions.
1. **Calculate the deductions:**
- **FICA**: \(1,935.00 \times 0.0765 = 147.70\)
- **Federal withholding**: \(1,935.00 \times 0.13 = 251.55\)
- **State withholding**: \(1,935.00 \times 0.09 = 174.15\)
2. **Total deductions**:
\[
Total\ deductions = FICA + Federal\ withholding + State\ withholding
\]
\[
Total\ deductions = 147.70 + 251.55 + 174.15 = 573.40
\]
3. **Calculate net pay**:
\[
Net\ pay = Gross\ pay - Total\ deductions
\]
\[
Net\ pay = 1,935.00 - 573.40 = 1,361.60
\]
Now, you want to find out how much is allowed for housing and additional debt payments. Although the problem doesn't provide specific percentages for housing and additional debt payments, we typically allocate a portion of the net pay to these expenses.
Assuming you're allowed approximately 30% of your net pay for housing and additional debt payments:
\[
Housing\ and\ debt\ allocation = Net\ pay \times 0.30
\]
\[
Housing\ and\ debt\ allocation = 1,361.60 \times 0.30 = 408.48
\]
It looks like none of the provided options match this calculation. However, let's check against your given options.
Considering the closest approximate value of net pay division from given responses, since the values given are far lower than the calculated, we can assume that if `Housing and Debt` is around 28% to 30% of net pay. Still, repeating the deductions would likely lead to no figures reflecting the necessity based on assumption.
Since the question does specifically inquire about allowed housing and debt payments based on what's available in response options:
If any of the options were based on a lower rounding or a specific consideration (for example a conceivable percentage 27%) sure here I might suggest **the next best closest option** of:
- **$381.16**
Demonstrating that with net pay, strict division of needs shouldn't lead you into financial distress exceeding half your allowable entry as passive allotment per that basic threshold understanding since the upper wages don't represent loans obligations or recurring markets traditionally being followed.
Choose **$381.16** if it aligns with the case. But note you'll need more specifics for accurate deduction allowances.
1. **Calculate the deductions:**
- **FICA**: \(1,935.00 \times 0.0765 = 147.70\)
- **Federal withholding**: \(1,935.00 \times 0.13 = 251.55\)
- **State withholding**: \(1,935.00 \times 0.09 = 174.15\)
2. **Total deductions**:
\[
Total\ deductions = FICA + Federal\ withholding + State\ withholding
\]
\[
Total\ deductions = 147.70 + 251.55 + 174.15 = 573.40
\]
3. **Calculate net pay**:
\[
Net\ pay = Gross\ pay - Total\ deductions
\]
\[
Net\ pay = 1,935.00 - 573.40 = 1,361.60
\]
Now, you want to find out how much is allowed for housing and additional debt payments. Although the problem doesn't provide specific percentages for housing and additional debt payments, we typically allocate a portion of the net pay to these expenses.
Assuming you're allowed approximately 30% of your net pay for housing and additional debt payments:
\[
Housing\ and\ debt\ allocation = Net\ pay \times 0.30
\]
\[
Housing\ and\ debt\ allocation = 1,361.60 \times 0.30 = 408.48
\]
It looks like none of the provided options match this calculation. However, let's check against your given options.
Considering the closest approximate value of net pay division from given responses, since the values given are far lower than the calculated, we can assume that if `Housing and Debt` is around 28% to 30% of net pay. Still, repeating the deductions would likely lead to no figures reflecting the necessity based on assumption.
Since the question does specifically inquire about allowed housing and debt payments based on what's available in response options:
If any of the options were based on a lower rounding or a specific consideration (for example a conceivable percentage 27%) sure here I might suggest **the next best closest option** of:
- **$381.16**
Demonstrating that with net pay, strict division of needs shouldn't lead you into financial distress exceeding half your allowable entry as passive allotment per that basic threshold understanding since the upper wages don't represent loans obligations or recurring markets traditionally being followed.
Choose **$381.16** if it aligns with the case. But note you'll need more specifics for accurate deduction allowances.