State Income Tax: 7.50 Social Security: 9.00 Medicare: 2.40 What is Isaac's net pay? PART 2: YOU HAVE A PAYCHECK...NOW WHAT? What are your choices once you receive a paycheck? Read each scenario and answer the questions to compare costs and determine who saves more money once they receive his or her paycheck. Tony does not have a bank account so he pays a fee to cash his weekly paycheck. The place he cashes his check charges Tony 5 to cash every check. How much does Tony pay each month to cash his paychecks? How much does Tony pay each year?

To determine Tony's monthly and annual costs for cashing his paychecks, we need to calculate the total amount he pays each month and then multiply it by 12 to get the annual cost.<br /><br />Given information:<br />- Tony pays $5 to cash each paycheck.<br /><br />Step 1: Calculate the monthly cost.<br />Monthly cost = $5 × Number of paychecks per month<br />Assuming Tony receives 2 paychecks per month (e.g., bi-weekly):<br />Monthly cost = $5 × 2 = $10<br /><br />Step 2: Calculate the annual cost.<br />Annual cost = Monthly cost × 12<br />Annual cost = $10 × 12 = $120<br /><br />Therefore, Tony pays $10 each month to cash his paychecks and $120 each year.