Question

Laura Russo lost her earnings statement from Siler's Lawn and Garden. She recalls paying $43.00 in federal income taxes and knows she deposited $306.36 in her checking account. Each week she had deductions for Social Security and Medicare Taxes, $22.35 for medical insurance, 1.5% state tax, 1.5% local tax, and $25.00 for the credit union. What is her gross weekly pay?

Answer 1

Laura Russo's gross weekly pay is $431.29.

Explanation:

To find Laura Russo's gross weekly pay, we can work backward from the information given.

1. Start with the amount she deposited in her checking account:

$306.36

2. Add back the federal income taxes she paid:

$306.36 + $43.00 = $349.36

3. Now, consider the deductions she had each week:

- Social Security and Medicare Taxes: $22.35

- Medical Insurance: $22.35

- State Tax (1.5% of gross pay): 0.015 * Gross Pay

- Local Tax (1.5% of gross pay): 0.015 * Gross Pay

- Credit Union: $25.00

Let's denote her gross pay as "G." So, we have:

$349.36 = G - ($22.35 + $22.35 + 0.015G + 0.015G + $25.00)

Now, simplify and solve for G:

$349.36 = G - ($44.70 + 0.03G + $25.00)

$349.36 = G - $69.70 - 0.03G

Combine like terms:

$349.36 = 0.97G - $69.70

Now, add $69.70 to both sides of the equation:

$349.36 + $69.70 = 0.97G

$419.06 = 0.97G

Now, divide by 0.97 to find G:

G ≈ $419.06 / 0.97 ≈ $431.29

So, Laura Russo's gross weekly pay is $431.29.