Question

1. you earned $52,000 last year and your total tax due was $7,800. what was your effective tax rate? (4 points)

Explanation:

Step1: Recall the formula for Effective Tax Rate

The formula for effective tax rate is $\text{Effective Tax Rate} = \frac{\text{Total Tax Due}}{\text{Total Income}} \times 100\%$.

Step2: Substitute the given values

Here, total tax due is $\$7,800$ and total income is $\$52,000$. So we substitute these values into the formula: $\text{Effective Tax Rate} = \frac{7800}{52000} \times 100\%$.

Step3: Calculate the fraction

First, calculate $\frac{7800}{52000}$. Simplifying this fraction, we can divide numerator and denominator by 2600: $\frac{7800\div2600}{52000\div2600}=\frac{3}{20}$.

Step4: Convert to percentage

Now, $\frac{3}{20} \times 100\% = 15\%$.

Answer:

The effective tax rate is $15\%$.