Answer:
Given that,
Jason earns $670 weekly at his job at a local newspaper.
To find the weekly taxes for Jason’s salary.
tax rate is 27.2%
we get,
Weekly taxes for Jason’s salary is,
[tex]=620\times\frac{27.2}{100}[/tex][tex]=168.64[/tex]Weekly taxes for Jason’s salary is $168.64
Take home pay is, (per week)
[tex]=670-168.64[/tex][tex]=501.36[/tex]Take home oay for a month is,
[tex]=4\times501.36[/tex][tex]=2,005.44[/tex]Take home pay for a month is $2,005.44.
Given that,
If Jason wishes to purchase a car where his payments are no more than 15% of his take home pay for a month.
15% of his take home pay for a month is,
[tex]=\frac{15}{100}\times2,005.44[/tex][tex]=300.816[/tex]we get that, Jason wishes to purchase a car where his payments are no more than $300.816.
Therefore, the maximum monthly car payment he can afford is $300.816.
