At the Acme Cement Company, employees contribute to a welfare fund at the rate of 4% of the first $1000 earned, 3% of the next $1000, 2% of the next $1000 and 1% of any additional income. What will Mr. Morris contribute in a year in which he earns $20,000?
A)290
B)200
C)90
D)260
E)240
So he earns 20,000.
He pays 4% of the first 1000 earned = 40 dollars
He pays 3% of the next 1000 earned = 30 dollars
He pays 2% of the next 1000 earned = 20 dollars
He pays 1% of the remaining income (17,000) = 170 dollars
Add them up = 260
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Well, Mr. Morris is quite the generous guy, isn't he? Looks like he'll be contributing $260 to the welfare fund. So the answer is D) 260. That's a lot of cement for a good cause!
Mr. Morris will contribute a total of $260 in a year in which he earns $20,000. Therefore, the correct answer is D) 260.
To calculate Mr. Morris' contribution for a year in which he earns $20,000, we need to calculate the contribution for each income bracket and add them up.
1. Calculate the contribution for the first $1000 earned:
4% of $1000 = $40
2. Calculate the contribution for the next $1000 earned:
3% of $1000 = $30
3. Calculate the contribution for the next $1000 earned:
2% of $1000 = $20
4. Calculate the contribution for the remaining income:
Since Mr. Morris earns $20,000 and has already accounted for the first $3000 ($1000 + $1000 + $1000), the remaining income is $17,000.
1% of $17,000 = $170
5. Add up all the contributions:
$40 + $30 + $20 + $170 = $260
Therefore, Mr. Morris will contribute $260 in a year in which he earns $20,000.
The correct option is D) $260.