Question

School taxes for a local district are 2.5% of a household's income. The Smith household earns $80,000 per year. How much do the Smiths pay in school taxes per year?

Answer 1

Since 2.5% as a decimal is .025, the equation to get this is:

(.025)(80000)

Once multiplied, these equal 2,000. Or in other words, the Smiths pay $2,000 in school taxes per year.