To calculate how much you are allowed for housing and fixed expenses, we first need to determine your total deductions from your gross pay.
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Calculate FICA: \[ \text{FICA} = 0.0765 \times \text{Gross Pay} = 0.0765 \times 1843.45 \approx 136.12 \]
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Calculate Federal Withholding: \[ \text{Federal Withholding} = 0.09 \times \text{Gross Pay} = 0.09 \times 1843.45 \approx 165.91 \]
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Calculate State Withholding: \[ \text{State Withholding} = 0.065 \times \text{Gross Pay} = 0.065 \times 1843.45 \approx 119.82 \]
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Total Deductions: \[ \text{Total Deductions} = \text{FICA} + \text{Federal Withholding} + \text{State Withholding} \] \[ \text{Total Deductions} \approx 136.12 + 165.91 + 119.82 \approx 421.85 \]
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Net Pay: \[ \text{Net Pay} = \text{Gross Pay} - \text{Total Deductions} \] \[ \text{Net Pay} = 1843.45 - 421.85 \approx 1421.60 \]
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Allowed for Housing and Fixed Expenses: To find out an appropriate portion of the net pay for housing and fixed expenses, we commonly use a guideline that suggests a specific percentage (often around 30%). However, since you only need to choose from the provided options, we'll look at them in context:
- $516.17,
- $663.64,
- $510.01,
- $396.68.
None of these options seem to directly align with a typical 30% calculation based on net pay, but $396.68 is about 28% of the net pay ($1421.60 \times 0.28 \approx 396.68).
Thus, the best choice from the options provided is $396.68.