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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 30,000orlessperyearreceivearebateonbeforeandafterschoolcareof7530,000 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 40,000reducestherebateto5540,000 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 38,000andLucyearns38,000and Lucy earns 29,550. If the cost of before and after school care is 10,000peryear,whatamountofmoneydoesthepersonhavewhohastheleastamountofmoneyleftafterpayingforbeforeandafterschoolcare?A: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: 30,000C:30,000 C: 40,001 D: $40,000 E: None of these

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Solution

First, let's calculate the amount of money each mother has left after paying for before and after school care.

  1. Jade earns 40,001.Sinceherearningsareabove40,001. Since her earnings are above 40,000, her rebate is 30%. So, she pays 70% of the 10,000schoolcarecost,whichis10,000 school care cost, which is 7,000. Therefore, Jade has 40,00140,001 - 7,000 = $33,001 left.

  2. Emily earns 38,000.Sinceherearningsarebetween38,000. Since her earnings are between 30,000 and 40,000,herrebateis5540,000, her rebate is 55%. So, she pays 45% of the 10,000 school care cost, which is 4,500.Therefore,Emilyhas4,500. Therefore, Emily has 38,000 - 4,500=4,500 = 33,500 left.

  3. Lucy earns 29,550.Sinceherearningsare29,550. Since her earnings are 30,000 or less, her rebate is 75% and she also receives a school bonus of 6,000.So,shepays256,000. So, she pays 25% of the 10,000 school care cost, which is 2,500.Therefore,Lucyhas2,500. Therefore, Lucy has 29,550 - 2,500+2,500 + 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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