Question

Tax rates are 10% on the first 10,000 you earn and 20% on amounts over that. You earn 15,000. What is your tax?

Answer 1

This problem can be divided into two parts Part 1 - income up to $10,000 times 10% = $1,000 Part 2 - income over $10,000 = $15,000 - 10,000 = $5,000then, $5,000 times 20% = $1,000 Finally, $1,000 + 1,000 = $2,000