Monica has a yearly salary of $29,700. Her employer withholds $3336 in state and federal taxes and $2641 in FICA taxes throughout the year. She has the following monthly costs: transportation is $240, cell phone bill is $70, student loans require $200 in repayment, and rent is $675. She is using the average monthly costs for each of the following in order to gain an idea of other monthly expenses: utilities are $120, internet is $85, health insurance is $293, and groceries are $190. What is Monica’s monthly net pay amount? Round your answer to the nearest cent, if necessary.
First, let's calculate Monica's total annual expenses for each category:
Transportation: $240/month * 12 months = $2880/year
Cell phone bill: $70/month * 12 months = $840/year
Student loans: $200/month * 12 months = $2400/year
Rent: $675/month * 12 months = $8100/year
Utilities: $120/month * 12 months = $1440/year
Internet: $85/month * 12 months = $1020/year
Health insurance: $293/month * 12 months = $3516/year
Groceries: $190/month * 12 months = $2280/year
Total annual expenses:
$2880 + $840 + $2400 + $8100 + $1440 + $1020 + $3516 + $2280 = $21876
Now, let's calculate Monica's total annual income after taxes:
$29,700 (yearly salary) - $3336 (state and federal taxes) - $2641 (FICA taxes) = $23,723
Now, let's subtract Monica's total annual expenses from her total annual income:
$23,723 - $21,876 = $1847
Finally, let's calculate Monica's monthly net pay amount by dividing the annual surplus by 12:
$1847 / 12 = $153.92
Therefore, Monica's monthly net pay amount is $153.92.