When income is $15,000, the amount of income taxes owed is $2,000; when income increases to $20,000, the amount owed increases to $3,000. The average income tax rate when a person earns $15,000 is

Question

Quizplus · Accepted Answer

To find the average income tax rate, we divide the amount of income taxes owed by the amount of income.

For an income of $15,000, the average income tax rate is:
$2,000 ÷ $15,000 = 0.133 or 13.3%

Therefore, the correct answer is C.

When Income Is $15,000, the Amount of Income Taxes Owed