Question 543471
Hey Jim,
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To answer this question you set up an equation like so:
{{{x-0.10x=10000}}}
You have some amount minus 10% of that amount, which leaves you with $10,000.
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Doing some algebra, you can reduce that down and find a much easier way of calculating what you'll need.
{{{x-0.10x=10000}}} factor out the x's on the left
{{{x*(1-.10)=10000}}} divide by (1-.10)
{{{x=(10000/(1-0.10))=10000/0.90=11111.11}}}
You need to w/d $11,111.11 to get exactly $10k after 10% withholding.
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For future calculations, you can use the following formula:
{{{x=(AmountNeeded)/(1-WithholdingPercent)}}}
Hope this helps!