Dr. Grimes won $5,000 playing VA Lottery. 1/4 of the money goes to federal taxes, and 1/25 goes to state taxes. How much money did she get after taxes?
(SHOW ALL WORK)
1/4 * 5,000 = ?
1/25 * 5,000 = ?
Add those two products together.
Then subtract the sum from $5,000
Thank you!
You're welcome.
To calculate the amount of money Dr. Grimes receives after taxes, we need to subtract the taxes from the total prize money.
First, let's calculate the federal tax. Dr. Grimes will pay 1/4 (or 1 out of 4) of the $5000 prize money as federal tax.
Federal Tax = (1/4) * $5000
To find the result, we can simply divide 5000 by 4:
Federal Tax = $5000 / 4
= $1250
Next, we need to calculate the state tax. Dr. Grimes will pay 1/25 (or 1 out of 25) of the remaining prize money after subtracting the federal tax.
Remaining Prize Money = Total Prize Money - Federal Tax
= $5000 - $1250
= $3750
State Tax = (1/25) * Remaining Prize Money
To find the state tax, we can divide the remaining prize money by 25:
State Tax = $3750 / 25
= $150
Now, let's find out how much money Dr. Grimes gets after taxes by subtracting both the federal and state taxes from the remaining prize money:
Money After Taxes = Remaining Prize Money - Federal Tax - State Tax
= $3750 - $1250 - $150
= $3750 - $1400
= $2350
Therefore, Dr. Grimes receives $2350 after deducting both federal and state taxes from her $5000 lottery prize.