Question

Andrew earns 45,300 in taxable income annually and pays federal income taxes 5,345.40 what is Andrew net federal income tax rate

Answer 1

Answer:C. 11.8%

Andrew earns $45,300 in taxable income annually, and pays federal income taxes of $5,345.40. What is Andrew’s net federal income tax rate?

a.

8.47%

b.

15.1%

c.

11.8%

d.

9.1%

just took test

Answer 2

Information

Taxable income (annual): $45,300

Fed. income tax: $5,345.40

Step-by-step explanation

You want to find the net federal income tax rate (which is a percentage)

Therefore, you find out $5,345.40 is what percent of $45,300 (put this as an equation, with x being on the taxable income side, so:

5,345.40 = 45,300x

Divide 45,300 by both sides, so the right side cancels out and:

`(5,345.40)/(45,300) = x`

5,345.40 ÷ 45,300 = 0.118

Convert 0.118 into a percentage (multiply it by 100)

0.118 x 100 = 11.8%

Solution

The net federal income tax rate is 11.8%