Suppose Javier earns $50,000 per year and pays $500 in taxes, while Camilla earns $100,000 per year and pays $20,000 in taxes. In this scenario, Javier's effective tax rate is _______ and Camilla's effective tax rate is _______.

Question

Quizplus · Accepted Answer

Javier's effective tax rate is calculated as $500 / $50,000 = 0.01 or 1%, and Camilla's effective tax rate is $20,000 / $100,000 = 0.20 or 20%. However, there seems to be a discrepancy in the calculation for Javier's rate in the options provided. Given the options, the closest match to the calculated rates would be 2 percent for Javier (though it should be 1% based on the calculation) and 20 percent for Camilla, indicating a possible error in the question or options.

Suppose Javier Earns $50,000 Per Year and Pays $500 in Taxes