Suppose Bob earns $20,000 per year and pays $2,000 in taxes, while Cindy earns $40,000 per year and pays $4,000 in taxes. In this scenario, Bob's tax rate is _______ and Cindy's tax rate is _______.

Question

Quizplus · Accepted Answer

Bob's tax rate is calculated as $2,000 / $20,000 = 0.10 or 10%, and Cindy's tax rate is $4,000 / $40,000 = 0.10 or 10%, making both of their tax rates 10%.

Suppose Bob Earns $20,000 Per Year and Pays $2,000 in Taxes