Tameka has taxable income of $84,125 that is taxed as follows: Her average tax rate is:

Question

Tameka has taxable income of $84,125 that is taxed as follows:  Her average tax rate is:

Quizplus · Accepted Answer

To find the average tax rate, we need to divide the total tax paid by the total income.
The tax rate for each portion of the income is given in the brackets as:
- First $9,325: 10% 
- Next $28,625: 15%
- Next $53,950: 25%
Thus, the total tax paid is:
9,325(0.10) + 28,625(0.15) + 46,175(0.25) = $14,495.75
The average tax rate is:
14,495.75 / 84,125 = 0.172 (rounded to three decimal places)
So, the average tax rate is approximately 17.2%, or 20% (rounded to the nearest whole number), which is closest to choice B.

Tameka Has Taxable Income of $84,125 That Is Taxed as Follows