Suppose that you work at the Peacock Blue store for 40 hours over five days at a rate of $9.25/hour. You then quit your job. Deductions are FICA (7.65%), federal withholding (12%), and state withholding (8%). Your expenses are transportation at $5.25/day, lunch at $3.85/day, and black slacks required for work at $19.95. How much is your discretionary income for the week?

I come out with $201.84, 221.49, 249.80 - I just can't get it...
• $324.50
• $304.55
• $222.19
• $202.24

The correct anwser is 202.24

To calculate your discretionary income for the week, you need to subtract your deductions and expenses from your total earnings. Let's break it down step by step:

1. Calculate your total earnings:
Since you worked 40 hours at a rate of $9.25/hour, your total earnings would be:
40 hours * $9.25/hour = $370

2. Calculate your total deductions:
- FICA (7.65%): Multiply your total earnings by 7.65%:
$370 * 7.65% = $28.30
- Federal withholding (12%): Multiply your total earnings by 12%:
$370 * 12% = $44.40
- State withholding (8%): Multiply your total earnings by 8%:
$370 * 8% = $29.60

The total deductions would be:
$28.30 + $44.40 + $29.60 = $102.30

3. Calculate your total expenses:
- Transportation: $5.25/day for 5 days = $26.25
- Lunch: $3.85/day for 5 days = $19.25
- Black slacks: $19.95

The total expenses would be:
$26.25 + $19.25 + $19.95 = $65.45

4. Calculate your discretionary income:
Subtract the total deductions and expenses from your total earnings:
$370 - $102.30 - $65.45 = $202.25

Therefore, your discretionary income for the week would be $202.25.

Based on your options, the closest answer would be $202.24.

Steve discretionary is basically your "wants" rather than your "needs" I believe. So for example... I want a dang Nintendo switch but don't actually need it.

40*9.25 = 370.00

The deductions are
.0765*370 = 28.31
.12*370 = 44.40
.08*370 = 29.60

But, what's discretionary? The taxes and slacks are mandatory, but the transportation and lunches could be adjusted if necessary. So, I'd say 247.74

Hmmm. Maybe transportation is also required, so that would leave 221.49

Hmmm. Maybe you need to review what's considered discretionary. Oh, and check my math...

Guess what, my 12 year old granddaughter figured it out when she got home from school -- she is a math wiz -- Got $202.24. Discretionary is what is left over. I try to help my 11th grade GD but could not figure this one out.

202.24