Question

Della lives in a city where she pays federal and local taxes on her income. On her last paycheck, 30% of her income was taken out for federal taxes, and then 10% was taken out of her income after federal taxes for local taxes.

If Della's last paycheck was $3,300.00 before taxes, how much was taken out of her paycheck for local taxes?
A. $891.00
B. $2,310.00
C. $1,320.00
D. $231.00

Answer 1

Della's local taxes were $231.00.

Step-by-step explanation:

To calculate how much was taken out of Della's paycheck for local taxes, we need to first calculate the amount taken out for federal taxes. We start with her total income of $3,300.00 and multiply it by the federal tax rate of 30%:

Federal Taxes = $3,300.00 × 30% = $990.00

Next, we calculate the amount taken out for local taxes. We start with Della's remaining income after federal taxes, which is $3,300.00 - $990.00 = $2,310.00. Then, we multiply this amount by the local tax rate of 10%:

Local Taxes = $2,310.00 × 10% = $231.00

Therefore, $231.00 was taken out of Della's paycheck for local taxes. The correct answer is D. $231.00.