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?

Answer 1

Taxable income = x − 350. Taxes = 0.15(x − 350). So take-home pay = x − 350 − 0.15(x − 350) = 0.85(x − 350).