Question

Take-Home Pay and Cost of Living
Key Terms:

Median annual wage (salary): What the average worker might make in one year, after about 20 years of experience in that career.
Annual take-home pay: What a worker earns in one year, after taxes have been deducted. For this portfolio, we will assume a 30% tax rate, meaning 70% of the annual wage is take-home pay.


For example, an MRI tech with a salary of $77,360 would expect to take home about $54, 152 per year.

(Annual pay before taxes * 0.7 = amount of take-home pay.)

Question 1
If someone earns an annual salary of $70,000 and pays 30% in taxes, what would their annual take-home pay be?(1 point)
Responses

$70,000
$70,000

$49,000
$49,000

$40,000
$40,000

$21,000

Answer 1

To calculate the annual take-home pay, you can use the formula:

Annual take-home pay = Annual salary * (1 - tax rate)

In this case, the annual salary is $70,000 and the tax rate is 30% (or 0.30). Thus, the calculation becomes:

Annual take-home pay = $70,000 * (1 - 0.30)
Annual take-home pay = $70,000 * 0.70
Annual take-home pay = $49,000

So the correct answer is **$49,000**.