Question

amount of tax, TTT, in dollars to be paid by an individual with an income of III between 8{,}2258,2258, comma, 225 and 34{,}50034,50034, comma, 500 dollars is given by the equation above. Tax is paid from the portion of income above 8{,}2258,2258, comma, 225 dollars and the remaining amount becomes a part of disposable income. What percentage of income above 8{,}2258,2258, comma, 225 dollars remains after paying tax for an individual whose income falls within the specified range

Answer 1

`Amount = 87.5\%`

Step-by-step explanation:

Given

`T =0.125(I - 8225)`

Range = 8225 to 34500

See comment for proper format

Required

The percentage left after tax paid for individual in the above range

`T =0.125(I - 8225)`

Rewrite as:

`T = 12.5\% (I - 8225)`

The 12.5% implies that individuals in that income range pay 12.5% of the income.

So, the amount left is:

`Amount = 100\% - 12.5\%`

`Amount = 87.5\%`