If personal income up to and including $25,000 is not taxed,income of $25,001 to $50,000 is taxed at 10%,and income over $50,000 is taxed at 20%,then a family earning an income of $75,000 will pay _____ in personal taxes.
A)$6,000
B)$7,500
C)$11,250
D)$15,000

Question

Quizplus · Accepted Answer

The first $25,000 is not taxed. The next $25,000 (from $25,001 to $50,000) is taxed at 10%, which equals $2,500. The remaining $25,000 (from $50,001 to $75,000) is taxed at 20%, which equals $5,000. Adding these amounts gives a total tax of $7,500.

If Personal Income Up to and Including $25,000 Is Not