Question

Fifteen percent of an employee’s taxable income is collected each paycheck. Before taxes are removed from each paycheck, $350 of tax-exempt expenses is taken out.
If the variable x represents the employee’s pay before tax-exempt expenses and taxes are removed, which expression represents the employee’s take-home pay after these deductions?
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Answer 1

Taxable pay = x − 350. Taxes = 0.15(x − 350). Take-home pay = (x − 350) − 0.15(x − 350) = 0.85(x − 350), which is 0.85x − 297.5.