Question

9 Sam earns $54 275 in a year.

He pays no income tax on the first $8200.
He pays 18% income tax on everything he earns over $8200.
a Work out how much income tax he pays.
b Work out what percentage of his income he pays in tax.
c If the income tax rate is increased to 21%, how much more tax will Sam pay?

Answer 1

See all three answers below

Explanation:

Given data

Amount Earned= $54275

Income Tax= 18%

a Work out how much income tax he pays.

Amount of income tax

=18/100*54275

=0.18*54275

=$9769.5

b Work out what percentage of his income he pays in tax.

=9769.5/54275*100

=0.18*100

=18%

c. If the income tax rate is increased to 21%, how much more tax will Sam pay?

=21/100*54275

=0.21*54275

=$11397.75