8
QuizMultiple Choice

Budgeting and Being a Smart Consumer(CFA1)

Question 8 • General Financial Literacy - Brinkerhoff - 2000 - 2026/27

Chin needs more money in his net pay each month, so he plans to reduce his federal income tax deduction from 12% to 11%. His monthly gross pay is $3,500, and his deductions before the change are listed in the table.DeductionDollar AmountFederal Income Tax$420State Income Tax$95Social Security$89Medicare$40 What will be his new monthly net pay? Round your answer to the nearest dollar.

Answer
A
$2821
B
$2857
C
$2860
D
$2891
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