Practice!

Sample Problem

Mr. Leo was paid for $3,200 this month, which included $400 bonus. He should pay a 15% income tax for his base salary excluding the bonus. How much was Mr. Leo’s paycheck this month?

$.00

Solution

The pay without bonus: 3200 – 400 =$ 2800.00

The pay without bonus subtracted by income tax: 2800 × (100% – 15%) = $2380.00

Thus, his paycheck: 2380 + 400 = $2780.00