Question

below is a graph of the murphys annual expenses. if the murphys gross annual household income is $85,420, how much will they pay in federal taxes?
murphys annual expenses
federal taxes 24%
other 9%
clothing 5%
recreation 4%
transportation 9%
medical care 5%
food 7%
housing and household 27%
state/local taxes 10%
$3,559.17
$8,542.00
$20,500.80
$29,897.00

Explanation:

Step1: Identify the percentage for federal taxes

From the pie chart, federal taxes account for 24% of the annual income.

Step2: Calculate the amount of federal taxes

To find the amount, we multiply the gross annual income by the percentage (converted to a decimal). The formula is: $ \text{Amount} = \text{Income} \times \text{Percentage} $, so $ 85420 \times 0.24 $.
Calculating this: $ 85420 \times 0.24 = 20500.80 $

Answer:

\$20,500.80 (which corresponds to the option \$20,500.80)