Word Problem:
A banker has an annual income of $75,234. The income tax she has to pay is 7%. What is the amount of income tax the banker has to pay?
Solution:
To solve the problem, we need to use the formula. P = B × R
- Percentage = Base × Rate
- P = B × R
- P = 75,234 × 7%
- P = 75,234 × 0.07
- P = 5,266.38
Answer:
- Therefore, the amount of income tax the banker has to pay is 5,266.38.