Lucia contributes 6% of her salary to a payroll savings plan. If her
annual salary is $14,500, how much is withheld each month for savings?
a. $72.50
b. $870
c. $16.73
d. $ 7.25
To find out how much is withheld each month for savings, we need to first calculate Lucia's monthly salary:
Monthly salary = Annual salary / 12
Monthly salary = $14,500 / 12
Monthly salary = $1,208.33
Next, we need to calculate how much is withheld each month for savings:
Amount withheld = Monthly salary x percentage contributed
Amount withheld = $1,208.33 x 0.06
Amount withheld = $72.50
Therefore, the answer is (a) $72.50.