Question

When you buy something,it actually costs more than you may think-at least in terms of how much money you must earn to buy it. For example, if you pay 23% of your income in taxes, how much money would you have to earn to buy a used car for $7,700?​

Answer 1

We need to earn $10,000 to buy that car.

Explanation:

Let initial bank account balance = 0;

Suppose our income is $x.

Since 23% of income shpould be paid in taxes,

Money paid in taxes =
`(23)/(100) *`
`x`

After paying taxes,

Money in our account = Income - Money paid in taxes;

Money in our account = x -
`(23)/(100)*`
`x`

Money in our account =
`(77)/(100)*`
`x`. (equation 1)

Given,

Price of the car to be bought = $7700 (equation 2)

To be able to buy that car,

Money in account = Price of the car

From equation 1 and equation 2,

`(77)/(100)*`
`x = 7700`

`x=(7700*100)/(77)`

Therefore,

x = $10000.

Therefore

We need to earn $10000 to buy the car.