A teacher has an annual income of $51,750. The income tax the teacher has to pay is 7%. What is the amount of income tax in dollars and cents the teacher has to pay?
A. $3,448.25
B. $3,662.50
C. $3,891.10
D. $3,933.01
To calculate the income tax the teacher has to pay, we need to multiply the teacher's annual income by the tax rate.
Income tax = Annual income * Tax rate
Income tax = $51,750 * 0.07
Income tax = $3,622.50
Therefore, the amount of income tax the teacher has to pay is $3,662.50, which is option B.