Personal Finance 1st Edition by Jack R. Kapoor

Exercise 33

Calculating Net Pay and Spendable Income. Assume your gross pay per pay period is $2,000 and you are in the 33 percent tax bracket. Calculate your net pay and spendable income if you save $200 per pay period after paying income tax on $2,000. (Obj. 5)

Step 1 of 3

Net pay per pay period can be calculated by deducting tax from gross pay per pay period.

Spendable income can be calculated by deducting savings from Net pay per pay period.