Question

Debra made $25,000 in taxable income last year.

Suppose the income tax rate is 10% for the first $9000 plus 16% for the amount over $9000.
How much must Debra pay in income tax for last year?

Answer 1

$3460

Explanation:

Ok, basically, she made $25000 last year.

Since she made over $9000, and the income tax rate for the first $9000 is 10%, we will multiply 9000 * .1 to get the partial income tax amount.

9000 * .10 = 900

Now, anything after $9000 is 16%. So 25,000 - $9,000 is $16,000. We need to multiply 16000 * .16 to get the other partial income tax amount.

16000 * .16 = 2560

Now, add the two numbers together:

2560 + 900 = 3460

She paid $3460 in income tax last year.