Monica has a yearly salary of $33,300. Her employer withholds $4995 in state and federal taxes and $3463 in FICA taxes throughout the year. She has the following monthly costs: transportation is $230, cell phone bill is $75, student loans require $210 in repayment, and rent is $625. She is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $220, internet is $85, health insurance is $312, and groceries are $250. What is Monica’s monthly net pay amount? Round your answer to the nearest cent, if necessary.

Question

Monica has a yearly salary of $33,300. Her employer withholds $4995 in state and federal taxes and $3463 in FICA taxes throughout the year. She has the following monthly costs: transportation is $230, cell phone bill is $75, student loans require $210 in repayment, and rent is $625. She is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $220, internet is $85, health insurance is $312, and groceries are $250. What is Monica’s monthly net pay amount? Round your answer to the nearest cent, if necessary.

Answer 1

First, calculate Monica's total annual deductions for taxes:

$4995 + $3463 = $8458

Next, calculate Monica's total annual costs for transportation, cell phone, student loans, and rent:
$230 + $75 + $210 + $625 = $1140

Then, calculate Monica's total annual costs for utilities, internet, health insurance, and groceries:
$220 + $85 + $312 + $250 = $867

Now, calculate Monica's total annual expenses:
$1140 + $867 = $2007

Subtract Monica's total annual expenses from her yearly salary to find her annual net pay:
$33,300 - $8458 - $2007 = $22,835

Finally, divide Monica's annual net pay by 12 to find her monthly net pay:
$22,835 / 12 = $1902.92

Therefore, Monica's monthly net pay amount is $1902.92.