If Theresa paid $5,000 in taxes last year on taxable income of $50,000, her effective tax rate wasGroup of answer choices0.1%10%20%1000%
Question
If Theresa paid 50,000, her effective tax rate was
- Group of answer choices
0.1%
10%
20%
1000%
Solution
To find the effective tax rate, you divide the total tax paid by the total income and then multiply by 100 to get a percentage.
Here's the step-by-step calculation:
- Theresa paid $5,000 in taxes.
- Her taxable income was $50,000.
- Divide the amount of tax paid by the taxable income: 50,000 = 0.1
- Multiply by 100 to get a percentage: 0.1 * 100 = 10%
So, Theresa's effective tax rate was 10%.
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