7. CCSS MODELING Dora has 8% of her earnings deducted from her paycheck for
a college savings plan. She can choose to take the deduction either before taxes are
withheld, which reduces her taxable income, or after taxes are withheld. Dora's tax
rate is 17.5%. If her pay before taxes and deductions is $950, will she save more money
if the deductions are taken before or after taxes are withheld? Explain.
Fig: 1