Question

In one month Kimberly earned $500 at her part-time job, and $50 was withheld for federal income tax. Suppose she earns $750 next month. How much will be withheld for federal income

Answer 1

It will be withheld $75 for federal income.

Explanation:

Proportions

Assuming the federal income tax is proportional to the earnings, we can establish the following relationship between the income tax (T) and the earnings (E):

T = k.E

Kimberly earned E=$500 and paid T=$50 for federal income tax, With this information, we can calculate the value of k:

50 = k ( 500)

k = 50 / 500

k = 0.1

The model is now:

T = 0.1*E

If Kimberl earns $750 next month, the tax will be:

T = 0.1*($750)

T = $75

It will be withheld $75 for federal income.