Question

a doctor has an annual income of $148,525. the income tax the doctor has to pay is 6%. what is the amount of income tax in dollar and cents the doctor has to pay?
a $7,325.30
b $7,936.20
c $8,008.25
d $8,911.50

Explanation:

Step1: Convert percentage to decimal

To find the income tax, we first convert the tax rate of 6% to a decimal. We do this by dividing 6 by 100, so \( 6\% = \frac{6}{100} = 0.06 \).

Step2: Calculate income tax

We then multiply the annual income by this decimal to find the income tax. The annual income is $148,525, so the income tax is \( 148525 \times 0.06 \).
Calculating this, \( 148525\times0.06 = 8911.5 \)? Wait, no, wait, let's recalculate. Wait, 148525 0.06: 148525 6 = 891150, then divide by 100, so 8911.5? But that's option D? Wait, no, wait, maybe I made a mistake. Wait, no, wait the options: D is $8,911.50. But wait, let's check again. Wait, the annual income is $148,525, tax rate 6%. So 148525 0.06. Let's compute 148525 0.06:

148525 0.06 = (148525 6) / 100 = 891150 / 100 = 8911.5. So that's $8,911.50, which is option D. Wait, but let me check the options again. Option D is $8,911.50. So that's the correct answer. Wait, but let me check my calculation again. 148525 0.06: 148525 0.01 is 1485.25, so 0.06 is 6 times that, so 1485.25 * 6 = 8911.5. Yes, that's correct. So the income tax is $8,911.50.

Wait, but let me check the options again. The options are:

A: $7,325.30

B: $7,936.20

C: $8,008.25

D: $8,911.50

So the correct calculation is 148525 * 0.06 = 8911.5, which is $8,911.50, so option D.

Answer:

D. $8,911.50