question 2 of 10: you make $38,000 per year. you have been offered a promotion and a $5,000 raise per year…

question 2 of 10: you make $38,000 per year. you have been offered a promotion and a $5,000 raise per year. your average federal income tax rate will go up from 12% to 16% per year. should you take the new job and the raise? a) yes b) no

question 2 of 10: you make $38,000 per year. you have been offered a promotion and a $5,000 raise per year. your average federal income tax rate will go up from 12% to 16% per year. should you take the new job and the raise? a) yes b) no

Answer

Explanation:

Step1: Calculate current take - home pay

$38000\times(1 - 0.12)=38000\times0.88 = 33440$

Step2: Calculate new job take - home pay

$(38000 + 5000)\times(1 - 0.16)=43000\times0.84 = 36120$

Step3: Compare

Since $36120>33440$, it's better to take the new job.

Answer:

A. Yes