Question

Suppose tax rate on first $10,000 of income is 0 percent; 10 percent on next $20,000; 20 percent on next $20,000; 30 percent on next $20,000; and 40 percent on income over $70,000. Family A has income of $120,000 and Family B an income of $55,000. What is tax bill of each?

Answer 1

Answer:

Family A=32.000  and Family B=6.000

Explanation:

there are the calculations

$Family A=10.000*0\%+20.000*10\%+20.000*20\%+20.000*30\%+50.000*40\%$

$Family A=32.000$

the key here to apply the formula is to go adding the value so the first 10.000 multiplied by 0, the 20.000 multiplied by 10%..., but here we have 30.000 of the total 120.000

$Family B=10.000*0\%+20.000*10\%++20.000*20\%$

$Family B=6.000$