Question

Due to temporary tax cuts in 2010, a person with typical deductions earning $50,000 per year would have saved 2% of their income plus $850 in federal taxes.

How much money would this person save?
$

What percent did this person save on her income? Round to the nearest tenth of a percent.
%

Answer 1

a) $1850

b) 3.7%

Explanation:

a) This is a straight calculation based on the description in the problem statement.

2%×$50,000 +850 = $1000 +850 = $1850

__

b) To find the percentage of income saved, find the ratio of savings to income and multiply that by 100%.

$1850/$50,000×100% = 3.7%

Answer 2

Part A: $1850

Part B : 3.7%

Explanation:

Due to temporary tax cuts in 2010, a person with typical deductions earning $50,000 per year would have saved 2% of their income plus $850 in federal taxes.

Part A:

Total savings will be =
`(0.02*50000)+850`

=
`1000+850=1850` dollars

Part B:

The percent did this person save on her income will be =
`(1850)/(50000)*100= 3.7`%