Monica has a yearly salary of $26,200. Her employer withholds $2880 in state and federal taxes and $2376 in FICA taxes throughout the year. She has the following monthly costs: transportation is $210, cell phone bill is $60, student loans require $200 in repayment, and rent is $350. She is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $270, internet is $65, health insurance is $273, and groceries are $260. What is Monica’s monthly net pay amount? Round your answer to the nearest cent, if necessary.

Question

Monica has a yearly salary of $26,200. Her employer withholds $2880 in state and federal taxes and $2376 in FICA taxes throughout the year. She has the following monthly costs: transportation is $210, cell phone bill is $60, student loans require $200 in repayment, and rent is $350. She is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $270, internet is $65, health insurance is $273, and groceries are $260. What is Monica’s monthly net pay amount? Round your answer to the nearest cent, if necessary.

Answer 1

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

Total taxes withheld = $2880 + $2376 = $5256

Next, calculate Monica's total yearly costs:
Total yearly costs = $210 + $60 + $200 + $350 + $270 + $65 + $273 + $260 = $1698

Calculate Monica's total yearly net pay:
Total yearly net pay = $26,200 - $5256 - $1698 = $18,246

Calculate Monica's monthly net pay:
Monthly net pay = $18,246 / 12 = $1520.50

Therefore, Monica's monthly net pay amount is $1520.50.