Suppose an income tax is levied on none of the first $1,000,10% of the next $9,000,and 20% of the remainder of earnings.How much tax would Miranda have to pay if she earned $20,000?

Question

Quizplus · Accepted Answer

Miranda would pay no tax on the first $1,000. For the next $9,000, she would pay 10%, which is $900. For the remaining $10,000 ($20,000 - $10,000 already accounted for), she would pay 20%, which is $2,000. Adding these amounts gives a total tax of $2,900.

Suppose an Income Tax Is Levied on None of the First