Question

4 insert a vlookup function in cell i5 to identify and calculate the federal withholding tax. with a taxable pay of $422.50, spencers tax rate is 25% and the withholding tax is $105.63. the vlookup function returns the applicable tax rate, which you must then multiply by the taxable pay.

Explanation:

Step1: Identify tax - rate

The VLOOKUP function is used to find the tax - rate. Here, the tax - rate is given as 25% or 0.25.

Step2: Calculate withholding tax

Multiply the taxable pay by the tax - rate. Taxable pay = $422.50, tax - rate = 0.25. So, withholding tax = $422.50×0.25.
$422.50\times0.25 = 105.625\approx105.63$

Answer:

$105.63$