Question

Caroline earns $49000 a year, and her friend Jennifer earns $51000 a year but doesn't belong to a health fund. The tax rule this year is $40000 and above pay $5000 plus 40 cents in the dollar in tax on anything over $40000 per annum and $50000 and above pay $ 9000 plus 30 cents in the dollar in tax on anything over $ 50,000per annum, plus 2% of her income if he is not in a health fund.

Answer 1

Caroline has to pay $8600 taxes

Jennifer has to pay $10320 taxes

Explanation:

I guess the question is who has to pay how much taxes, right ?

Caroline earns $49000, and I guess, she belongs to a health fund.

she has to pay $5000 for the first $40000.

and for the remaining $9000 she has to pay $0.40 per dollar.

that means 9000×0.4 = $3600

and no penalties for no health fund.

so altogether $5000 + $3600 = $8600 taxes

Jennifer earns $51000 and did not belong to a health fund.

she has to pay $9000 for the first $50000.

and for the remaining $1000 she had to pay $0.30 part dollar.

that means 1000×0.3 = $300

and 2% of the total income because no health fund

51000×0.02 = $1020

so, altogether $9000+$300+$1020 = $10320 taxes