Question

Linda made $30,000 in taxable income last year.Suppose the income tax rate is 15% for the first $7000 plus 18% for the amount over $7000.How much must Linda pay in income tax for last year?Х5?Continue2022 M

Answer 1

Given:

Income made last year = $30,000

Tax rate for the first $7000 = 15% = 0.15

Tax rate for the amount over $7000 = 18% = 0.18

Let's find the amount Linda must pay in income tax last year.

To find the amount she must pay, we have:

Tax for first $7000 = 0.15 x 7000 = $1050

Tax for amount over $7000 = 0.18 x (30000 - 7000)

= 0.18 x 23000 = $4140

Therefore, the amount she must pay in income tax is:

T = $1050 + $4140 = $5,190

Linda must pay $5,190 in income tax for last year.

ANSWER:

$5,190