Question

A government collects $70 billion quarterly in tax revenue. Each year it allocates $15 billion to the justice system and $29 billion for the administrative costs. What percentage of its total annual tax revenue is left for allocation to the remaining categories of government spending

Answer 1

Answer:

84.29%

Explanation:

Quarterly tax revenue collected = $70 billion

Thus,

annual tax revenue collected = $70 billion × 4

= $280 billion

Total amount allocated = $15 billion + $29 billion

= $44 billion

Therefore,

Percentage of annual tax revenue allocated

= [ $44 billion ÷ $280 billion ] × 100%

= 15.71%

Hence,

Percentage of its total annual tax revenue is left for allocation to the remaining categories of government spending

= 100% - 15.71%

= 84.29%