Question

question 4
the auto mechanic from the previous question is going to look into moving from philadelphia, pa to reading, pa. their salary will stay $47,000.

• reading has a local tax rate of 3.6%.

how much will the mechanic pay in local taxes if they moved to reading, pa?
a $1,692.00
b $1,782.00
c $1,438.20
d $1,410.00

Explanation:

Step1: Convert percentage to decimal

To find \(3.6\%\) of \(47000\), first convert \(3.6\%\) to a decimal. \(3.6\%=\frac{3.6}{100}=0.036\).

Step2: Calculate local tax

Multiply the salary by the decimal - form of the tax rate. \(47000\times0.036=(47\times1000)\times0.036 = 47\times(1000\times0.036)=47\times36\).
Using the multiplication formula \(a\times(b + c)=a\times b+a\times c\) (where \(36 = 30+6\)), we have \(47\times36=47\times(30 + 6)=47\times30+47\times6=1410+282 = 1692\).

Answer:

A. \(\$1,692.00\)