Math Problem Statement
In a particular state and for a particular year, the income tax rates for a single person were as follows. A 4% tax of the first $8300 earned, 4.75% of the next $3100 earned, 5.25% of the next $2250 earned, 5.9% of the next $7100 earned, 6.45% of the next $56 comma 500 earned, 6.65% of the next $128 comma 600 earned, 6.85% of the next $823 comma 400 earned, and 8.82% of any amount earned over $1 comma 029 comma 250. Let f(x) represent the amount of tax owed on an income of x dollars. Answer parts (a) through (f) below and in parts (a) through (d) explain in a sentence what the answer means. f(50 comma 000)equals This means a tax of $ was due on an income of $
Solution
Let's compute the total tax owed on an income of $50,000 using the tax rates provided. The tax rates are structured progressively, so we will calculate the tax owed for each income range step-by-step until we reach $50,000.
Tax brackets:
-
4% on the first $8,300:
-
4.75% on the next $3,100 (income between $8,301 and $11,400):
-
5.25% on the next $2,250 (income between $11,401 and $13,650):
-
5.9% on the next $7,100 (income between $13,651 and $20,750):
-
6.45% on the next $29,250 (income between $20,751 and $50,000):
Since the income falls within this bracket and reaches $50,000, we calculate the tax for the remaining amount:
Total tax calculation:
Now, we sum up the taxes from all brackets to find the total tax due on $50,000:
Final Answer:
The total tax owed on an income of $50,000 is $2,903.91.
Explanation:
This means a tax of $2,903.91 was due on an income of $50,000.
Would you like more details or have any further questions? Here are five follow-up questions:
- How would the tax change if the income were $60,000?
- How is the total tax affected by increasing each income bracket by 10%?
- What is the tax rate applied to an income of $120,000?
- How would the total tax compare if the person were filing jointly with another individual?
- What would be the marginal tax rate for an income of $200,000?
Tip: When calculating taxes in a progressive tax system, always apply each rate to the corresponding income range, not the entire income!
Ask a new question for Free
By Image
Drop file here or Click Here to upload
Math Problem Analysis
Mathematical Concepts
Piecewise Functions
Progressive Tax Calculation
Basic Arithmetic
Formulas
Tax for each bracket = income in bracket × tax rate
Total tax = Sum of taxes from all brackets up to the income level
Theorems
None directly, but involves principles of progressive taxation and piecewise functions
Suitable Grade Level
Grades 9-12