Harold has an annual income of $20,600. He has 20% of his gross salary
withheld for deductions. What is the net amount of each paycheck if he
gets paid biweekly?
a. $4,120
b. $950.77
c. $633.85
d. $650
First, we need to find the amount that is withheld for deductions.
20% of $20,600 = 0.20 x $20,600 = $4,120
This means that $4,120 is withheld from Harold's gross salary each year.
To find his net pay per paycheck, we need to divide his annual net income by the number of paychecks he receives in a year.
Harold is paid biweekly, which means he receives 26 paychecks per year (52 weeks in a year divided by 2).
To find his net pay per paycheck:
Annual net income = Annual gross income - Deductions
Annual net income = $20,600 - $4,120
Annual net income = $16,480
Net pay per paycheck = Annual net income / Number of paychecks per year
Net pay per paycheck = $16,480 / 26
Net pay per paycheck = $633.85
Therefore, the answer is (c) $633.85.