Simon's monthly take home pay (after taxes) is 2500.if he pays 21% of his gross pay(before taxes) in taxes. what is the gross pay?
Pg - 0.21Pg = $2500
0.79Pg = 2500
Pg = $3164.56 = Gross pay.
To find Simon's gross pay, we need to reverse the process of calculating his take-home pay.
Step 1: Find the amount of taxes Simon pays each month.
Since Simon pays 21% of his gross pay in taxes, we can calculate his monthly tax payment as a percentage of his monthly take-home pay.
Tax = 21% of 2500 = 0.21 * 2500 = 525
Step 2: Calculate Simon's gross pay.
To find the gross pay, we'll add the tax amount to his take-home pay.
Gross Pay = Take-home Pay + Tax = 2500 + 525 = 3025
Therefore, Simon's gross pay is $3025.
To find Simon's gross pay, we can set up an equation using the information given. Let's denote his gross pay as G.
Since Simon pays 21% in taxes, his take-home pay (after taxes) is 100% - 21% = 79% of his gross pay.
Therefore, we can write the equation as:
0.79G = 2500
To solve for G, we can divide both sides of the equation by 0.79:
G = 2500 / 0.79
Evaluating the division gives us:
G = 3164.56
Therefore, Simon's gross pay is approximately $3164.56.