Refer to Scenario 19.2. When this person earns $40,000, her average tax rate is

A) 8%.
B) 12.5%.
C) 20%.
D) indeterminate from this information.

Question

Refer to Scenario 19.2. When this person earns $40,000, her average tax rate isA)  8%.B)  12.5%.C)  20%.D)  indeterminate from this information.

Samantha Maroney · Accepted Answer

Final Answer : A, Explanation :  The average tax rate is calculated by dividing the total amount of taxes paid by the total income. In this scenario, the individual pays $3,200 in taxes on an income of $40,000. Therefore, the average tax rate is $3,200 / $40,000 = 0.08, or 8%.

Refer to Scenario 19.2. When this person earns $40,000, her average tax rate is

A) 8%.
B) 12.5%.
C) 20%.
D) indeterminate from this information.

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