58.2k views
0 votes
The income tax policy for residents of a tiny island nation that uses U.S. Dollars as its currency is as follows: The first $20,000 of a citizen’s income is taxed at a rate of 10%. The next $30,000 of the citizen’s income is taxed at a rate of 18%. Any amount over $50,000 is taxed at a rate of 27%.

How much income tax would an individual with an income of x dollars be charged, where x is at least $50,000?

0.10(20,000) + 0.18(30,000) + 0.27x
0.10(x − 20,000) + 0.18(x − 30,000) + 0.27x
0.10(20,000) + 0.18(30,000) + 0.27(x − 50,000)
0.10(20,000) + 0.18(30,000) + 0.27(50,000 − x)

1 Answer

4 votes

Answer:

C.

0.10(20,000) + 0.18(30,000) + 0.27(x − 50,000)

Explanation:

Let's take this one step at a time. First, the $20000 dollars is taxed by 10% = .10 as a decimal. So the first term is

.10(20000)

Next, we have to add on the second term, wherein the next $30000 is taxed by .18. So the second term is

.10(20000) + .18(30000)

Then, we have to take whatever's left, whatever we haven't yet taxed, and tax it at a 27% rate. This means x-50000, not x, because we're taking whatever's over the initial 50000 that we've already taxed.

0.10(20,000) + 0.18(30,000) + 0.27(x − 50,000)

User Davsp
by
7.6k points

No related questions found

Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

9.4m questions

12.2m answers

Categories