Question

Question A certain state charges a 12% tax rate on incomes up to $25,000 and 16% on income beyond that. If Rachel makes $33,000 per year, how much income tax will she pay? Do not include the dollar sign in your answer.

Answer 1

$4,280

Step-by-step explanation:

Tax on $25,000 = 12% of $25,000

Rachel's Income beyond $25,000 = 33,000-25,000=8,000

Tax on the income beyond $25,000 = 16% of 8,000.

Therefore:

`\text{Rachel's Income Tax}=12\%\; of\; 25000+16\%\text{ }of\; 8,000`
`\begin{gathered} =(0.12*25,000)+(0.16*8000) \\ =3000+1280 \\ =4280 \end{gathered}`

Rachel will pay an income tax of $4,280.