Working mothers who earn $30,000 or less per year receive a rebate on before and after school careof 75%, plus a school bonus of $6,000 that only applies to this category of earnings. Each dollarearned above this amount and up to $40,000 reduces the rebate to 55%, and for any amount abovethis, the rebate drops to 30%. There are three mothers – Jade earns $40,001, Emily earns $38,000and Lucy earns $29,550. If the cost of before and after school care is $10,000 per year, what amountof money does the person have who has the least amount of money left after paying for before andafter school care?A: $33,000 B: $30,000 C: $40,001 D: $40,000 E: None of these
Question
Working mothers who earn 6,000 that only applies to this category of earnings. Each dollarearned above this amount and up to 40,001, Emily earns 29,550. If the cost of before and after school care is 33,000 B: 40,001 D: $40,000 E: None of these
Solution
First, let's calculate the amount of money each mother has left after paying for before and after school care.
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Jade earns 40,000, her rebate is 30%. So, she pays 70% of the 7,000. Therefore, Jade has 7,000 = $33,001 left.
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Emily earns 30,000 and 10,000 school care cost, which is 38,000 - 33,500 left.
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Lucy earns 30,000 or less, her rebate is 75% and she also receives a school bonus of 10,000 school care cost, which is 29,550 - 6,000 = $33,050 left.
Comparing the amounts left, Jade has the least amount of money left after paying for before and after school care. So, the answer is A: $33,000.
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