Answer:
$7000
Explanation:
This problem seems scary at first sight, but don't be intimidated. It is actually pretty simple.
The column of equations (starting with 0.1d) at the right of T(d) is a list of option based on d, the taxable income. If d is less than or equal to (≤) 9875, than the equation is T(d) = 0.1d.
It shows that Noam has 90000 dollars for d, or the taxable income, and Betty has 120000 dollars.
Now, let's find the equations by plugging in 90,000 for d first.
90,000 is greater than 85, 526 and less than 163,300 (85, 526 ≤ 90,000 ≤ 163300).
Then we plug in 120,000 dollar to find the corresponding equation.
120000 is greater than 85, 526 and less than 163, 300 (85, 526 ≤ 120,000 ≤ 163300).
So the chosen equation is:
T(d) = .24( d -85525) + 14605.5
Plug in the Noam's number for d
T(d) = .24(90,000 - 85, 525) + 14, 605.5
T(d) = .24(4475) + 14,605.5
T(d) = 1074 + 14,605.5
T(d) = 15, 679.5
Now Plug in Betty's number for d
T(d) = .24 (120,000 - 85, 525) +14, 605.5
T(d) = .24( 34475) + 14, 605.5
T(d) = 8274 + 14, 605.5
T(d) = 22, 879.5
We are finding how much more tax does Betty pay, so we subtract 15, 679.5 from 22, 879.5.
22, 879.5 - 15, 679.5 = 7200
Betty pays $7000 more tax than Noam does.