Question

Juan made $1000 in taxable income last year.Suppose the income tax rate is 15% for the first $ 7000 plus 17% for the amount over $7000. How much must Juan pay in income tax for last year?

Answer 1

step 1

$1,000 < $7,000

so

the tax rate is 15%

15%=15/100=0.15

0.15*1,000=$150

therefore

The answer is $150