Question

Jim made S1000 in taxable income last year.

Suppose the income tax rate is 15% for the first S7500 plus 17% for the amount over $7500.
How much must Jim pay in income tax for last year?

Answer 1

Given that $1,000 is less than $7,500 then Jim has to pay 15% of $1,000 in taxes.

$1,000x15% = $150

Jim must pay $150 in taxes