Question

Donaldo has a part time job teaching paino lessons. He saves 25% of his earnings so that he can pay his income taxes at the end of each year.

If Donaldo saved $2,500 to pay last year's taxes, how much money did he earn last year?



Last year, Donaldo earned $ ____

Answer 1

Last year, Donald earned $10,000.

Explanation:

Let us assume the Donald's earnings last year = $ m

The income taxes = 25% of the salary

Now, It is given that the tax paid last year = $2,500

⇒ 25% of m = $2,500

Solving for the value of m, we get

`(25)/(100) * m = 2,500\\ \implies  m = 2,500 * 4 = 10,000`

or, m = $10,000

Hence, the last year earnings of Donald = $10,000