Charlie made $40,000 in taxable income last year.Suppose the income tax rate is 15% for the first $9000 plus 17% for the amount over $9000.How much must Charlie pay in income tax for last year?
Question
Charlie made 9000 plus 17% for the amount over $9000.How much must Charlie pay in income tax for last year?
Solution
Step 1: Calculate the tax for the first 9000 is 15%. So, Charlie's tax for this portion of his income is 1350.
Step 2: Calculate the tax for the amount over 40,000 last year, so the amount of his income over 40,000 - 31,000. The tax rate for this portion of his income is 17%, so Charlie's tax for this portion is 5270.
Step 3: Add up the tax from step 1 and step 2 Charlie's total tax for last year is 5270 (from step 2) = $6620.
So, Charlie must pay $6620 in income tax for last year.
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• For taxable income from $0 to $15,000, you pay 10% of your taxable income in taxes, plus• For taxable income above $15,000, you pay 18% of your taxable income.1. If your total income before exemptions were $10,000 how much would you pay in taxes?2. If your total income were $20,000 how much would you pay in taxes?3. If your total income were $50,000 how much would you pay in taxes?4. Write a function to model the total tax paid, T(x), with a total income of x dollars.5. Create a graph that shows taxes paid as a function of total income for the total income between $0 and $60,000.
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