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Homework Help: Couple of math questions

  1. Aug 25, 2005 #1
    I have a couple math questions that I am a bit rusty with. I know they are probably really easy, but bare with me, as I haven't done problems like these in a while.

    Here we go:

    A man makes $75,000. He must pay federal personal income tax of 10% on the first $12,000 of his income, 15% on the next $38,000, and 27% on the income up to $100,000.

    My question is: do I take the 27% out of what is left after I subtract the $12,000 and $38,000 or no?

    My answer was $13,650... Is that correct?

    The average annual salary of person A is $62,000, while the average salary of person B is $48,000. What percent more does person A make than person B?

    I did this one, but I don't think it's correct. I just really forget how to do problems like this. My answer was 12.73% or somewhere in that range.

    Any help is appreciated!!!!!
     
  2. jcsd
  3. Aug 25, 2005 #2

    LeonhardEuler

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    Gold Member

    Question 1:You take 27% out of the amount the person makes above 38,000. That's 75,000-38,00. Be careful not to subtract the 12,000 from this because it has no bearing on how much the person makes aboove 38,000.

    Question 2:When you talk about by what percent x is more than y, you mean what percent of y would you have to add to y to get x. So 3 is 50% more than 2 because 2 + (.5*2) = 3. In other words find the difference between x and y and see what percent of y this is. 3 - 2 = 1, 1 is 50% of 2, so 3 is 50% more than 2.
     
  4. Aug 25, 2005 #3
    I agree that you are right on the first one. My answer was also $13,650.

    The second one, I can't remember how to do such a thing, so I will not say anything :smile:


    edit... Leonhard that was how I remember this sort of problem in Economics. However, the problem states "15% on the next $38,000"

    In my thinking I said that meant up to an income of $50,000.

    You would have a table

    0 - 12000 at 10%
    12000 - 50000 at 15%
    50000 - 100000 at 27%

    Which would give

    1200
    5700
    6750 (because 75000 - 50000 = 25000 and that at 27% is 6750)
    _____
    total of 13650
     
    Last edited: Aug 25, 2005
  5. Aug 25, 2005 #4
    Thank you both so much!!!

    On the 2nd problem, is the answer 29.17%?
     
    Last edited: Aug 25, 2005
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