Question

Nikita paid $2073.90 in Medicare Tax last year. If Medicare tax is $1.45 tax per $100 earned, what was Nikita's annual income last year? Round your answer to the nearest dollar.

Answer 1

The amount of income she earned was $143,028

Here, we are interested in getting the amount of income earned by Nikita last year

From the question, the amount of tax paid per $100 is $1.45

From here, we can get the percenatge of income that is meant for medicare

Mathematically, that would be;

$\frac{1.45}{100}\text{ }\times\text{ 100\% = 1.45\%}$

What this mean is that 1.45% is paid to medicare per year

Hence, 1.45% of her total income last year is $2073.90

Let the amount of income earned be $x

Thus;

$\begin{gathered} \frac{1.45}{100}\text{ }\times\text{ x = 2073.90} \\ \\ \\ x\text{ = }\frac{100\times2073.90}{1.45} \\ \\ x\text{ = 143,027.59} \end{gathered}$

To the nearest dollars, the amount of income earned last year is $143,028