Nancy earns an annual gross salary of $16,250. She has 26% of her
gross salary withheld for taxes and other deductions. What is the net
pay of each paycheck if she is paid semimonthly?
a. $62.50
b. $541
c. $462.50
d. $501.04
First, we need to calculate Nancy's gross salary for each semimonthly paycheck:
$16,250 / 24 (number of pay periods in a year if paid semimonthly) = $677.08
Next, we need to calculate the amount withheld for taxes and other deductions for each paycheck:
$677.08 x 0.26 = $176.26
Finally, we can calculate Nancy's net pay for each paycheck:
$677.08 - $176.26 = $500.82
Rounded to the nearest cent, the answer is d. $501.04.