Question

Last year Joe earned $18,900. He did not pay tax on his remaining earnings. He paid 24 percent tax on his remaining earnings.

a. $4,536
b. $4,536 per month
c. $14,364
d. $14,364 per month

Answer 1

Joe's remaining income after paying a 24% tax on his earnings of $18,900 is $14,364 annually, which breaks down to $1,197 per month.

Step-by-step explanation:

The question asks for the calculation of Joe's earnings after tax, given that he paid a 24 percent tax rate on his income of $18,900. To calculate the amount of tax Joe paid, we can multiply his earnings by the tax rate:

Tax paid = 18,900 x 0.24 = $4,536

After determining the tax paid, we subtract this from Joe's earnings to find his remaining income after tax:

Remaining income = Total earnings - Tax paid = $18,900 - $4,536 = $14,364

Therefore, Joe's remaining income after tax is $14,364.

If we want to break this down into monthly earnings after tax, we divide the annual amount by 12:

Monthly income after tax = $14,364 / 12 = $1,197 per month