Question

Lucy made $25,000 in taxable income last year. Suppose the income tax rate is 15% for the first $7,000 plus 17% for the amount over $7,000. How much must Juan pay in income tax for last year?

Answer 1

Lucy must pay $4,410 in income tax for last year.

Step-by-step explanation:

In this case, Lucy made $25,000 in taxable income last year, and the income tax rate is 15% for the first $7,000 plus 17% for the amount over $7,000. To calculate the income tax for Lucy, we can break down the calculation into two parts:

1. Calculate the tax for the first $7,000: $7,000 * 0.15 = $1,050
2. Calculate the tax for the remaining amount over $7,000: ($25,000 - $7,000) * 0.17 = $3,360

Finally, we add the two amounts together: $1,050 + $3,360 = $4,410. Therefore, Lucy must pay $4,410 in income tax for last year.