Question

Carys is checking her tax bill for the last year .the tax rates were as follows: no tax on the first 11000 of earnings .earnings in excess of 11000 and up to 43000 taxed at a rate of 20%. earnings in excess of 43000 and up to 150000 taxed at a rate of 40%. earnings over 150000 taxed at a rate of 45%. last year carys earned 45600 before tax .how much tax did she pay in total?

Answer 1

total amount of tax paid by Carys is $7,440.

Explanation:

From the given question, Let us recall the following,

The no of tax on first earnings =11000

The earnings in excess of 1100 and up to 43000 taxed at a rate of =20%

the earnings in excess of 4300 and up to 150000 taxed at a rate of 40%

The earnings over 150000 taxed at a rate of = 45%

Now,

Recall that,

The rates of tax is as follows:

$0-$11,000 = no tax.

$11,000-$43,000 = 20%.

$43,000-$150,000 = 40%.

The earnings over $150,000 = 45%.

During the past year Carys earned $45,600,

The next step is to find the tax paid by Carys for 11,000-43,000 at rate of 20%, after that we find the tax for amount over 43,000 at the rate of 40%.

The tax amount paid by Carys for 11000-43000 is = 0.20 * (32000)

The amount of tax paid by Carys for 11000-43000 = 6400

Then

The amount of tax paid by Carys for the amount over 43000 = 40/100 (45,600-43000)

The amount of tax paid by Carys for the amount over 43000 is = 0.40 *(2600)

The amount of tax paid by Carys for the amount over 43000 = 1040

Therefore,

The total amount of tax paid by Carys is =6400+1040

which is =7440

Answer 2

$7,440.

Explanation:

We have been given the tax rates as follows:

$0-$11,000 = No tax.

$11,000-$43,000 = 20%.

$43,000-$150,000 = 40%.

Earnings over $150,000 = 45%.

Since last year Carys earned $45,600, so we will have to find the tax paid by her for 11,000-43,000 at rate of 20%, then the tax for amount over 43,000 at the rate of 40%.

`\text{The amount of tax paid by Carys for 11000-43000}=(20)/(100)* (43,000-11,000)`

`\text{The amount of tax paid by Carys for 11000-43000}=0.20* (32,000)`

`\text{The amount of tax paid by Carys for 11000-43000}=6400`

`\text{The amount of tax paid by Carys for the amount over 43000}=(40)/(100)* (45,600-43,000)`

`\text{The amount of tax paid by Carys for the amount over 43000}=0.40* (2600)`

`\text{The amount of tax paid by Carys for the amount over 43000}=1040`

`\text{The total amount of tax paid by Carys}=6400+1040`

`\text{The total amount of tax paid by Carys}=7440`

Therefore, Carys paid an amount of $7,440 in tax.