Question

kathy makes $66,000 per year, and she pays a net federal income tax rate of 18.85%. how much should kathy expect to pay in taxes every year?
a. $78,530
b. $12,441
c. $10,481
d. $53,559
please select the best answer from the choices provided
a
b
c
d

Explanation:

Step1: Identify the formula

To find the tax amount, we use the formula: \( \text{Tax Amount} = \text{Income} \times \text{Tax Rate} \)

Step2: Convert tax rate to decimal

The tax rate is \( 18.85\% \), which in decimal form is \( 0.1885 \) (since \( 18.85\%=\frac{18.85}{100} = 0.1885 \))

Step3: Calculate the tax amount

Kathy's income is \( \$66,000 \). So, we calculate \( 66000\times0.1885 \)

$$ 66000\times0.1885 = 66000\times\frac{1885}{10000}=\frac{66000\times1885}{10000} $$

First, calculate \( 66000\times1885 = 66000\times(1800 + 85)=66000\times1800+66000\times85 = 118800000+5610000 = 124410000 \)
Then, divide by \( 10000 \): \( \frac{124410000}{10000}=12441 \) (Wait, there is a miscalculation here. Wait, \( 66000\times0.1885 = 66000\times0.1 + 66000\times0.08+66000\times0.0085=6600 + 5280+561 = 6600+5280 = 11880+561 = 12441 \)? Wait, but the option b is $12,441. Wait, but let's recalculate: \( 66000\times0.1885 \). Let's do \( 66000\times0.1885 = 66000\times(0.1 + 0.08 + 0.008 + 0.0005)=66000\times0.1=6600; 66000\times0.08 = 5280; 66000\times0.008 = 528; 66000\times0.0005 = 33 \). Then sum: \( 6600+5280 = 11880; 11880+528 = 12408; 12408+33 = 12441 \). So the tax amount is \( \$12,441 \)

Answer:

b. $12,441