The Internal revenue
service adjust the value of an exemption was exemption base on inflation (and rounded to the nearest $500. If the exemption was $3,100 and inflation was 4.7 percent this year, what would be amount of the exemption will it be next year?
To calculate the amount of the exemption for the next year, we need to adjust the current exemption based on the given inflation rate and rounding rules.
First, we need to calculate the inflation adjustment. Multiply the current exemption amount ($3,100) by the inflation rate (4.7% or 0.047):
Inflation adjustment = $3,100 x 0.047 = $145.70
Next, we need to round the inflation adjustment to the nearest $500. To do this, we divide the adjustment by $500, round to the nearest whole number, and then multiply by $500:
Rounded adjustment = round($145.70 / $500) x $500
To round the adjustment, we divide it by $500:
$145.70 / $500 = 0.2914
Then we round 0.2914 to the nearest whole number:
Rounded adjustment = round(0.2914) = 0
Therefore, the rounded adjustment is 0.
Finally, to find the amount of the exemption for the next year, we add the rounded adjustment to the current exemption amount:
Exemption for next year = $3,100 + $0 = $3,100
So, the amount of the exemption for next year would be $3,100.