Question

Bert earns $35,000 gross annual salary. In Bert's jurisdiction there is a progressive tax system with rules as follows: Any amounts earned up to $20,000 are taxed at x%. Any amounts earned beyond $20,000 are taxed at 20%. Given that Bert pays $4,500 per annum in income tax, calculate x. Give your answer to the nearest tenth of a percent. Do not include the percent symbol in your answer.

Answer 1

Answer:

7.5

Step-by-step explanation:

Given;

• Bert earns $35,000 gross annual salary
• Any amounts earned up to $20,000 are taxed at x%
• Any amounts earned beyond $20,000 are taxed at 20%
• Bert pays $4,500 per annum in income tax

To find x

Amount earned beyond $20,000

= $35,000 - $20,000

= $15,000

That is the amount to be taxed at 20%

Therefore,

x% × 20000 + 20% × 15000 = 4500

200x + 3000 = 4500

200x = 4500 - 3000

200x = 1500

x = 1500/200

x = 7.5