Final answer:
Vickie will pay $8,000 in income tax which is calculated by multiplying her annual income of $40,000 by the tax rate of 20%.
Step-by-step explanation:
Vickie has an annual income of $40,000 and is required to pay 20% in income tax. To calculate the amount of income tax Vickie will pay, we use the following formula:
Tax Paid = Annual Income × Tax Rate
Vickie's annual income: $40,000
Income tax paid: $40,000 × 20% = $8,000
In order to find out how much income tax Vickie pays, we simply take her annual income and multiply it by the tax rate. The tax rate is represented in decimal form, so 20% becomes 0.20. When Vickie's annual income of $40,000 is multiplied by the tax rate of 0.20, the result is $8,000, which is the total income tax she is required to pay for the year. This calculation is assuming a flat tax rate where all income is taxed at the same rate without consideration for a progressive tax system or other possible tax deductions and credits that could apply in different real-world scenarios. In this simplified example, we are not accounting for such complexities.