The following are the income tax assessed in a certain country.
- No tax for an income up to \$10,000
- If the income is more than \$10,000 up to \$20,000 the tax is rate at 10%
- If the income is more than \$20,000 the tax rate is 15%
(a) Sketch the graph of the tax rate $R$ as a function of income $I$
The graph shows the tax rate $R$ as function of the income $I$.
(b) How much tax is assessed on an income of \$14,000? On \$26,000?
Since \$14,000 is greater than \$10,000 its tax rate is 10%
Tax on \$14,000 = \$ $(14,000 - 10,000)(10\%)$
Tax on \$14,000 = \$ $(14,000 - 10,000)(0.10)$
Tax on \$14,000 = \$$14,000(0.10)$
Tax on \$14,000 = $\$400$
Since \$26,000 is greater than \$10,000 its tax rate is 15%
Tax on \$26,000 = \$ $(26,000 - 10,000)(15\%)$
Tax on \$26,000 = \$ $(26,000 - 10,000)(0.15)$
Tax on \$26,000 = \$$26,000(0.15)$
Tax on \$26,000 = $\$2,400$
(c) Sketch the graph of the total assessed tax $T$ as the function of income $I$.
The graph shows the total assessed tax $T$ as the function of income $I$.
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