question 5 out of 5\nkatie has taxable income of $45,000. she is single and her tax rates are 10% on the…

question 5 out of 5\nkatie has taxable income of $45,000. she is single and her tax rates are 10% on the first $7,000 of taxable income, 15% of the amount over $7,000 up to $28,400 of taxable income and 25% on the remainder. what is katies average tax rate? (keep 4 decimal places)\ntype your answer here

question 5 out of 5\nkatie has taxable income of $45,000. she is single and her tax rates are 10% on the first $7,000 of taxable income, 15% of the amount over $7,000 up to $28,400 of taxable income and 25% on the remainder. what is katies average tax rate? (keep 4 decimal places)\ntype your answer here

Answer

Explanation:

Step1: Calculate tax for the first - part

The first $7000$ of taxable income is taxed at 10%. So the tax for this part is $7000\times0.1 = 700$.

Step2: Calculate the amount in the second - part

The amount of income in the range from $7000$ to $28400$ is $28400 - 7000=21400$. The tax rate for this part is 15%. So the tax for this part is $21400\times0.15 = 3210$.

Step3: Calculate the amount in the third - part

The remaining income is $45000 - 28400 = 16600$. The tax rate for this part is 25%. So the tax for this part is $16600\times0.25=4150$.

Step4: Calculate the total tax

The total tax is $700 + 3210+4150=8060$.

Step5: Calculate the average tax rate

The average tax rate is $\frac{8060}{45000}\approx0.1791$.

Answer:

$0.1791$