Problema Solution
You are planning a trip to Japan in the fall. You estimate that for two weeks, you will need $5,263 (This includes airfare, room and board, daily expenses, and travel). Your gross biweekly income is $1,626 for one pay period. For each pay period, you pay 6.2% Social Security, 1.45% Medicare, $85 in state taxes, $225 in federal taxes, and $775 in regular expenses. You save for 14 consecutive, biweekly pay periods. How much will you have saved up and will you have saved enough to visit Japan for two weeks? Round all your answers to the nearest dollar.
Answer provided by our tutors
Gross biweekly income for one pay period is: $1,626
For each pay period, you pay 6.2% Social Security, 1.45% Medicare, $85 in state taxes, $225 in federal taxes, and $775 in regular expenses:
(0.062 + 0.0145)*1,626 + 85 + 225 + 775 = $1209
Net biweekly income for one pay period is: 1,626 - 1209
For 14 consecutive, biweekly pay periods you will save:
14*(1,626 - 1209) = 5,838
You would have saved $5,838 and since 5,838 > 5,263 you will have saved enough to visit Japan for two weeks.