Question

RATIOS, PROPORTIONS, AND PERCENTSCalculating income taxTeresa made $20,000 in taxable income last year.Suppose the income tax rate is 10% for the first $7500 plus 16% for the amount over $7500.How much must Teresa pay in income tax for last year? I need help with this math problem.

Answer 1

We need find the tax on the first 7500

7500 * 10%

7500 * .10 = 750

Now we find the tax on what is over 7500

20000 -7500 =12500

The tax rate for this amount is 16%

12500 * 16%

12500 * .16

2000

Add the tax for both amounts together

750 + 2000

2750

The total tax paid is 2750