Question

A teacher has an annual income of $32,500. The income tax the teacher has to pay is 8%. What is the amount of income tax in dollars and cents that the teacher has to pay?

a. $2,000
b. $26,000
C. $2,600
d. $4,000"

Answer 1

The amount of income tax the teacher has to pay is c) $2,600.

Step-by-step explanation:

To find the income tax, multiply the teacher's income by the tax rate. First, convert the tax rate from a percentage to a decimal by dividing 8 by 100 (8% = 0.08).

Then, multiply the annual income by the tax rate: $32,500 * 0.08 = $2,600. Therefore, the teacher has to pay $2,600 in income tax. The income tax calculation involves multiplying the teacher's annual income by the tax rate, expressed as a decimal.

Here, the tax rate is given as 8%, which needs to be converted into a decimal (8% = 0.08). After converting the percentage to a decimal, you multiply it by the teacher's income of $32,500 to find the income tax amount. In this case, the calculation yields $2,600 as the income tax payable by the teacher.

Hence, therefore option c) is correct.