Question

5. In 2011, Manitoba progressive income tax rates were 10.8% on the first $31,000, 12.75% on the next $36,000, anc

17.4% on any additional income. If your gross taxable earnings for the year were $85,000, what percentage of your
earnings did you pay in taxes?

Answer 1

Explanation:

0 <= income <= 31000 : 10.8%

31000 < income <= 31000+36000 = 67000 : 12.75%

67000 < income < anything above 67000 : 17.4%

the total income is

$85,000

the taxes paid are

10.8% of 31000 = $3348

12.75% of 67000 - 31000 = 12.75% of 36000 = $4590

17.4% of 85000 - 67000 = 17.4% of 18000 = $3132

so, out of $85000 you paid

3348

4590

3132

----------

$11,070

taxes

100% = 85000

1% = 100%/100 = 85000/100 = 850

how many % are 11070 ?

well, as many as how often 1% fits into that amount :

11070 / 850 = 13.02352941...% ≈ 13.02%