T has a tax base of $30,000 and pays a tax of $2,500 on the first $25,000 and $750 on the next $5,000.T has an average tax rate of

Name: T has a tax base of $30,000 and pays a tax of $2,500 on the first $25,000 and $750 on the next $5,000.T has an average tax rate of
Brand: Quizplus
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Question

Quizplus · Accepted Answer

The average tax rate is the total tax paid divided by the tax base.

Total tax paid: $2,500 + $750 = $3,250

Average tax rate: $3,250 / $30,000 = 0.1083 or 10.83%

Therefore, the answer is choice D, 10.83 percent.

T Has a Tax Base of $30,000 and Pays a Tax