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A person who has an income of $10,000 pays what percent (to the neares

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A person who has an income of $10,000 pays what percent (to the neares [#permalink]

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New post 24 Oct 2017, 00:30
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Re: A person who has an income of $10,000 pays what percent (to the neares [#permalink]

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New post 24 Oct 2017, 03:10
I'll try:
140+4% of 2000 (income above 8k)=140+80=220
220/10000=0,022=2,2%~2%

Answer B?

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Re: A person who has an income of $10,000 pays what percent (to the neares [#permalink]

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New post 25 Oct 2017, 03:56
1st slab - 4000(0.01)= 40
2nd slab - 40+(2000*0.02)=80
3rd slab - 80+(2000*0.03)=140
4th slab - 140+(2000*0.04)= 220

Total tax paid= 40+80+140+220=480

Percent tax paid=(480/10000)*100=4.8=5

Choice E

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A person who has an income of $10,000 pays what percent (to the neares [#permalink]

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New post 25 Oct 2017, 07:13
Bunuel wrote:
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A person who has an income of $10,000 pays what percent (to the nearest percent) of his or her income in taxes?

(A) 1
(B) 2
(C) 3
(D) 4
(E) 5

Whichever tax bracket you choose for the $10,000, the amount she pays is $220. That amount is 2.2 percent of her income. Answer B

She has to pay only once. (Otherwise, someone who makes $11,000 pays less than she. That defies the logic of the progressive tax bracket data.)

$10,000 happens to be the end and beginning of two brackets. It doesn't matter. Both brackets yield identical taxes owed.

1) Lower bracket (range) amount

In the $8,000-10000 bracket, a person who earns $10,000 pays:
a) a flat $140 plus
b) 4% of income over 8,000

(10,000-8,000) = $2,000 excess income
($2,000 * .04) = $80 excess tax
Flat $140 tax + $80 excess tax =
Total taxes paid: $220

2) Higher bracket tax amount

If (10,000 - 15,000), taxes paid:
a) a flat $220 plus
b) 5 percent of income > 10,000
There is no income over 10,000.
Total taxes paid: $220

$220 is what percent of her $10,000 income?

Percent of income:

\((\frac{220}{10000}
* 100)\) = (.022 * 100) =

2.2 percent, round down to 2%

Answer B

* Here, a "bracket" specifies a range of income. If you fall in that range, you pay whatever amount the bracket says. Usually a bracket such as this one would say: "8000-9999, [pay $140 plus. . ."]
The next bracket would step up to "10000 - 12000, [pay $180 + . . ."] It doesn't matter here. The amounts are the same.

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Re: A person who has an income of $10,000 pays what percent (to the neares [#permalink]

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New post 25 Oct 2017, 08:38
Income of 10,000 falls in the slab : 8000-1000 -- 140 + 4% of income over 8,000
140+\(\frac{4}{100}\)*2000=220
Percentage of income = \(\frac{220}{10000}\)*100=2.2
Approx. 2%
Answer B.

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A person who has an income of $10,000 pays what percent (to the neares [#permalink]

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New post 25 Oct 2017, 08:49
It's already mentioned in 5th row entry that the base tax for $10,000 is 220. So 220 is what percent of $10,000? 2.2
=> 2% to nearest percent.
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Last edited by TaN1213 on 25 Oct 2017, 21:27, edited 1 time in total.

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Re: A person who has an income of $10,000 pays what percent (to the neares [#permalink]

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New post 25 Oct 2017, 10:36
Bunuel wrote:
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A person who has an income of $10,000 pays what percent (to the nearest percent) of his or her income in taxes?

(A) 1
(B) 2
(C) 3
(D) 4
(E) 5

For income up to 4000 = 40
For income 4000 - 6000 = 40 + 2% of 6000

So, Total Tax is = 40 + 40 + 1200

Thus, Tax will be 2000

Hence, Percentage of income Tax paid is 2% , answer will be (B)
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Re: A person who has an income of $10,000 pays what percent (to the neares [#permalink]

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New post 26 Oct 2017, 14:47
Bunuel wrote:
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A person who has an income of $10,000 pays what percent (to the nearest percent) of his or her income in taxes?

(A) 1
(B) 2
(C) 3
(D) 4
(E) 5


For a person who earns $10,000, he or she pays 220 + 0.05(10,000 - 10,000) = $220. Thus, his or her actual tax rate is 220/10,000 = 0.022 = 2.2% ≈ 2%.

Answer: B
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Re: A person who has an income of $10,000 pays what percent (to the neares   [#permalink] 26 Oct 2017, 14:47
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