Suppose that an income tax is levied on none of the first $1 000,10% of the next $9 000,and 20% of the remainder of earnings.How much tax would Miranda have to pay if she earned $20 000?

Question

Quizplus · Accepted Answer

Miranda pays no tax on the first $1,000. She pays 10% on the next $9,000, which is $900. She pays 20% on the remaining $10,000 ($20,000 - $10,000), which is $2,000. Total tax is $900 + $2,000 = $2,900.

Suppose That an Income Tax Is Levied on None of the First