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If Theresa paid $5,000 in taxes last year on taxable income of $50,000, her effective tax rate wasGroup of answer choices0.1%10%20%1000%

Question

If Theresa paid 5,000intaxeslastyearontaxableincomeof5,000 in taxes last year on taxable income of 50,000, her effective tax rate wasGroup of answer choices0.1%10%20%1000%

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Solution

To find the effective tax rate, you divide the total tax paid by the total income and then multiply by 100 to get a percentage.

Here's the step-by-step calculation:

  1. Theresa paid $5,000 in taxes.
  2. Her taxable income was $50,000.
  3. Divide the amount of tax paid by the taxable income: 5,000/5,000 / 50,000 = 0.1
  4. Multiply by 100 to get a percentage: 0.1 * 100 = 10%

So, Theresa's effective tax rate was 10%.

This problem has been solved

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