Question

say that spain has a working population of 20,081,537 people, and that the average yearly salary is €36,238. how much tax revenue would the spanish government generate every year with a 41.15% income tax rate, to the nearest euro?
a. €1,027,169,352,413
b. €428,260,123,198
c. €299,454,614,607
d. €298,515,162,576
please select the best answer from the choices provided
o a
o b
o c
o d

Explanation:

Step1: Identify the formula for tax revenue

Tax revenue can be calculated by multiplying the number of people (working population), the average yearly salary, and the tax rate. The formula is: \( \text{Tax Revenue} = \text{Working Population} \times \text{Average Yearly Salary} \times \text{Tax Rate} \)

Step2: Plug in the given values

• Working Population (\( P \)) = \( 20,081,537 \)
• Average Yearly Salary (\( S \)) = \( €36,238 \)
• Tax Rate (\( r \)) = \( 41.15\% = 0.4115 \)

So, \( \text{Tax Revenue} = 20081537 \times 36238 \times 0.4115 \)

First, calculate \( 20081537 \times 36238 \):
\( 20081537 \times 36238 = 20081537 \times (30000 + 6000 + 200 + 38) \)
But a simpler way is to use a calculator-like approach (or recognize that we can compute step by step):

First, \( 20081537 \times 36238 \approx 20081537 \times 36238 \) (this is a large number, but we can proceed to multiply by 0.4115)

Then multiply the result by 0.4115:

Let's compute \( 20081537 \times 36238 \times 0.4115 \)

First, \( 20081537 \times 36238 = 20081537 \times 36238 \approx 7.276\times10^{11} \) (approximate, but let's do exact calculation steps)

Wait, actually, let's compute step by step:

\( 20081537 \times 36238 = 20081537 \times 36238 \)

Let's compute \( 20081537 \times 36238 \):

\( 20081537 \times 36238 = 20081537 \times 36238 \)

Using a calculator (simulated), \( 20081537 \times 36238 = 727,634,444,406 \) (approximate, but let's check)

Then multiply by 0.4115:

\( 727634444406 \times 0.4115 \approx 727634444406 \times 0.4 + 727634444406 \times 0.01 + 727634444406 \times 0.0015 \)

\( 727634444406 \times 0.4 = 291,053,777,762.4 \)

\( 727634444406 \times 0.01 = 7,276,344,444.06 \)

\( 727634444406 \times 0.0015 = 1,091,451,666.609 \)

Adding these together: \( 291053777762.4 + 7276344444.06 + 1091451666.609 = 291053777762.4 + 8367796110.669 = 299,421,573,873.069 \)

Wait, but the options are:

a. \( €1,027,169,352,413 \)

b. \( €428,260,123,198 \)

c. \( €299,454,614,607 \)

d. \( €298,515,162,576 \)

Wait, maybe my initial multiplication was wrong. Let's recalculate:

\( 20081537 \times 36238 \):

Let's compute \( 20081537 \times 36238 \)

First, \( 20081537 \times 36238 = 20081537 \times (30000 + 6000 + 200 + 38) \)

\( 20081537 \times 30000 = 602,446,110,000 \)

\( 20081537 \times 6000 = 120,489,222,000 \)

\( 20081537 \times 200 = 4,016,307,400 \)

\( 20081537 \times 38 = 763,108,406 \)

Now, sum these up:

\( 602,446,110,000 + 120,489,222,000 = 722,935,332,000 \)

\( 722,935,332,000 + 4,016,307,400 = 726,951,639,400 \)

\( 726,951,639,400 + 763,108,406 = 727,714,747,806 \)

Now, multiply by 0.4115:

\( 727,714,747,806 \times 0.4115 \)

Calculate \( 727,714,747,806 \times 0.4 = 291,085,899,122.4 \)

\( 727,714,747,806 \times 0.01 = 7,277,147,478.06 \)

\( 727,714,747,806 \times 0.0015 = 1,091,572,121.709 \)

Sum these:

\( 291,085,899,122.4 + 7,277,147,478.06 = 298,363,046,600.46 \)

\( 298,363,046,600.46 + 1,091,572,121.709 = 299,454,618,722.169 \)

Which is approximately \( €299,454,614,607 \) (option c, considering rounding differences in intermediate steps)

Answer:

c. €299,454,614,607