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 did a typical person save?

Answer 1

If the person earns $50,000, we must find how much is 2% of that and then add it to $850. Then we would have how much a typical person saves.

First let's find 2% of $50,000

`\begin{gathered} 2\%\text{ of }50000=(2)/(100)\cdot500000=(2\cdot50000)/(100)=(100000)/(100)=1000 \\ \\ \\ \end{gathered}`

Therefore 2% of $50,000 is $1000. Now we add it to $850 and we get

`1000+850=1850`

The final result is $1850