Question

ren has three sources of income and pays different tax rates on each. the details are as follows: - income from job: $50,123, taxed at 20% - income from investments: $10,456, taxed at 15% - income from freelancing: $5,789, taxed at 10% calculate the weighted average tax rate on rens total income. (1 point) 18.34% 15.00% 17.50% 12.50%

Explanation:

Step1: Calculate total income

First, find the total income by adding up the three income sources.
\( \text{Total Income} = 50123 + 10456 + 5789 \)
\( \text{Total Income} = 66368 \)

Step2: Calculate weighted tax for each income

For job income: \( 50123 \times 0.20 = 10024.6 \)
For investment income: \( 10456 \times 0.15 = 1568.4 \)
For freelancing income: \( 5789 \times 0.10 = 578.9 \)

Step3: Calculate total tax

Sum the weighted taxes: \( 10024.6 + 1568.4 + 578.9 = 12171.9 \)

Step4: Calculate weighted average tax rate

Divide total tax by total income: \( \frac{12171.9}{66368} \approx 0.1834 \) or \( 18.34\% \)

Answer:

18.34%