To determine Quintina's new monthly net pay after she increases her federal income tax rate from 14% to 16%, we need to follow these steps:
1. Determine Quintina's gross pay:
Quintina's gross pay per month is \[tex]$2,100.
2. List the old deductions:
- Federal Income Tax: \$[/tex]294
- State Income Tax: \[tex]$89
- Social Security: \$[/tex]85
- Medicare: \[tex]$35
3. Calculate the total old deductions:
\[
\text{Total old deductions} = 294 + 89 + 85 + 35 = \$[/tex]503
\]
4. Calculate the old net pay:
[tex]\[
\text{Old net pay} = \text{Gross pay} - \text{Total old deductions}
\][/tex]
[tex]\[
\text{Old net pay} = 2100 - 503 = \$1597
\][/tex]
5. Update the federal income tax rate to 16% and calculate the new federal income tax amount:
[tex]\[
\text{New federal income tax} = 0.16 \times 2100 = \$336
\][/tex]
6. Keep the other deductions the same (state income tax, social security, medicare):
- State Income Tax: \[tex]$89
- Social Security: \$[/tex]85
- Medicare: \[tex]$35
7. Calculate the new total deductions with the increased federal income tax:
\[
\text{New total deductions} = 336 + 89 + 85 + 35 = \$[/tex]545
\]
8. Calculate the new net pay:
[tex]\[
\text{New net pay} = \text{Gross pay} - \text{New total deductions}
\][/tex]
[tex]\[
\text{New net pay} = 2100 - 545 = \$1555
\][/tex]
After rounding to the nearest dollar, the new monthly net pay is \[tex]$1555.
Thus, the correct answer is:
\[
\$[/tex]1555
\]
