Answered

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Tammy made $25,000 in taxable income last year.Suppose the income tax rate is 10% for the first S9500 plus 14% for the amount over S9500.How much must Tammy pay in income tax for last year?

Sagot :

The taxable income Tammy made last year was $25,000.

For the first $9,500, the income tax rate is 10%. That is;

[tex]\frac{10}{100}\times9500=950[/tex]

Also, 14% for amount over $9,500. That is;

[tex]\begin{gathered} 25000-9500=15500 \\ \frac{14}{100}\times15500=2170 \end{gathered}[/tex]

Thus, the total income tax Tammy paid last year was;

[tex]950+2170=3120[/tex]

CORRECT ANSWER: $3,120

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