Answered

Nancy Gerald, production control manager at

The Open-Pit Furnace Co., has a total of $497.25 deducted

from her monthly paycheck for Social Security and Medicare

taxes. What is her monthly salary?


Solution

Step-by step

Answer :

Answer: $6500

Step-by-step explanation:

An employee pays 6.2% as social security and 1.45% as Medicare and the company pays the remaining 7.65%.

Therefore, a total of (6.2% + 1.45%) = 7.65% is deducted from the person income.

Let the monthly salary of Nancy be a

7.65% × a = $497.25

0.0765a = $497.25

a = $497.25/0.0765

a = $6500

Her monthly salary is $6500

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