a country is considering two income tax rates. geoffrey is comparing what his tax bill would be under each…

a country is considering two income tax rates. geoffrey is comparing what his tax bill would be under each plan. under plan a, he pays 5% on the first $10,000. the next $85,000 is taxed at a rate of 10%. any money earned above $95,000 is taxed at 15%. he made $98,000 last year. which statement below is correct?\nplan a tax rates\n|$xleq$10,000|5%|\n|$10,000 < xleq$95,000|10%|\n|$x > $95,000|15%|\nplan b tax rates\n|all levels of income|10%|\nhe would pay approximately $350 more under plan b.\nhe would pay approximately $1,925 more under plan b.\nhe would pay approximately $5,700 more under plan a.\nhe would pay approximately $4,900 more under plan a.

a country is considering two income tax rates. geoffrey is comparing what his tax bill would be under each plan. under plan a, he pays 5% on the first $10,000. the next $85,000 is taxed at a rate of 10%. any money earned above $95,000 is taxed at 15%. he made $98,000 last year. which statement below is correct?\nplan a tax rates\n|$xleq$10,000|5%|\n|$10,000 < xleq$95,000|10%|\n|$x > $95,000|15%|\nplan b tax rates\n|all levels of income|10%|\nhe would pay approximately $350 more under plan b.\nhe would pay approximately $1,925 more under plan b.\nhe would pay approximately $5,700 more under plan a.\nhe would pay approximately $4,900 more under plan a.

Answer

Answer:

He would pay approximately $350 more under plan B.

Explanation:

Step1: Calculate tax under plan A

For the first $10000$: $10000\times0.05 = 500$. For the amount from $10000$ to $95000$ ($95000 - 10000=85000$): $85000\times0.1=8500$. For the amount above $95000$ ($98000 - 95000 = 3000$): $3000\times0.15 = 450$. Total tax under plan A is $500+8500 + 450=9450$.

Step2: Calculate tax under plan B

$98000\times0.1=9800$.

Step3: Find the difference

$9800 - 9450=350$. So he would pay approximately $350$ more under plan B.