Question

You are paid $15.60/hr. Your deductions are FICA 7.65%, Fed tax 11.15% and State tax 6.5%. You work 15/hr/wk and save 10% each week
how much do you save per month? Round any decimals to the nearest penny

Answer 1

To calculate how much you save per month, we need to follow these steps:

1. **Calculate your weekly earnings** before deductions.
2. **Calculate total deductions**.
3. **Calculate your take-home pay** after deductions.
4. **Calculate your weekly savings**.
5. **Calculate your monthly savings**.

### Step 1: Calculate Weekly Earnings
Your hourly wage is $15.60 and you work 15 hours per week:

\[
\text{Weekly Earnings} = 15.60 \, \text{(hourly wage)} \times 15 \, \text{(hours)} = 234.00
\]

### Step 2: Calculate Total Deductions
We need to calculate each deduction:

- FICA: 7.65%
- Federal Tax: 11.15%
- State Tax: 6.5%

**Total Deduction Percentage**:

\[
\text{Total Deduction Percentage} = 7.65\% + 11.15\% + 6.5\% = 25.3\%
\]

**Total Deductions**:

\[
\text{Total Deductions} = 234.00 \times 0.253 = 59.262
\]

### Step 3: Calculate Take-Home Pay
Now subtract the total deductions from your weekly earnings:

\[
\text{Take-Home Pay} = 234.00 - 59.262 = 174.738
\]

### Step 4: Calculate Weekly Savings
You save 10% of your take-home pay:

\[
\text{Weekly Savings} = 174.738 \times 0.10 = 17.4738
\]

### Step 5: Calculate Monthly Savings
There are approximately 4.33 weeks in a month, so:

\[
\text{Monthly Savings} = 17.4738 \times 4.33 = 75.7135
\]

Rounding to the nearest penny, your monthly savings would be:

\[
\text{Monthly Savings} = \text{approximately } 75.71
\]

So, you save **$75.71** per month.