Question

In 2010, Rooney got his first job and paid $7,004.18 in federal income tax. For the next 6 years, his income

taxes increased by 1.5% each year. When Rooney finishes paying his taxes for 2016, how much will he
have paid in income taxes since he first got the job in 2010?

Answer 1

$51,291.57

Explanation:

I took the test, the other guy's answer was counted wrong.

Answer 2

In this question, we're trying to find how much he paid in income taxes since 2010.

In this case, we would use the appreciation formula:

V = P(1 + r)^n

v = new value

p = principal

r = rate

n = number of years

Plug in your variables to the equation:

V = 7,004.18(1 + 0.015)^6

Solve:

V = 7,004.18(1 + 0.015)^6

V = 7,004.18(1.015)^6

V = 7,004.18(1.093443263942640625)

V = 7,658.673

V = 7,658.67

This means that he would've paid $7,658.67 in taxes since 2010

Answer:

$7,658.67