Monica has a yearly salary of $30,100. Her employer withholds $4214 in state and federal taxes and $2890 in FICA taxes throughout the year. She has the following monthly costs: transportation is $120, cell phone bill is $80, student loans require $150 in repayment, and rent is $550. She is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $160, internet is $75, health insurance is $307, and groceries are $270. What is Monica’s monthly net pay amount? Round your answer to the nearest cent, if necessary.

Question

Monica has a yearly salary of $30,100. Her employer withholds $4214 in state and federal taxes and $2890 in FICA taxes throughout the year. She has the following monthly costs: transportation is $120, cell phone bill is $80, student loans require $150 in repayment, and rent is $550. She is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $160, internet is $75, health insurance is $307, and groceries are $270. What is Monica’s monthly net pay amount? Round your answer to the nearest cent, if necessary.

Answer 1

First, calculate Monica's total monthly costs:

Transportation + cell phone + student loans + rent + utilities + internet + health insurance + groceries = $120 + $80 + $150 + $550 + $160 + $75 + $307 + $270 = $1,712

Next, subtract her total monthly costs from her yearly salary:
$30,100 - $1,712*12 = $30,100 - $20,544 = $9,556

Now, subtract the total amount withheld for taxes and FICA from her yearly salary:
$9,556 - $4,214 - $2,890 = $2,452

Finally, divide her total remaining income by 12 to find her monthly net pay:
$2,452 / 12 = $204.33

So, Monica's monthly net pay amount is $204.33.