Below is a graph of the Murphys’ annual expenses. How much will the Murphys’ pay in state/local taxes if their gross annual household income is $85,420?
A circle graph titled Murphy's Annual Expenses. Federal taxes, 24 percent; State/local taxes, 10 percent; Housing and household, 27 percent; Food, 7 percent; Medical care, 5 percent; Transportation, 9 percent; Recreation, 4 percent; Clothing, 5 percent; Other, 9 percent.
a.
$3,559.17
b.
$8542.00
c.
$20,500.80
d.
$29,897.00
To find out how much the Murphys will pay in state/local taxes, we need to multiply their gross annual household income by the percentage of state/local taxes.
$85,420 x 0.10 = $8,542.00
Therefore, the Murphys will pay $8,542.00 in state/local taxes.
The correct answer is b. $8,542.00
To find the amount the Murphys will pay in state/local taxes, we need to calculate 10% of their gross annual household income of $85,420.
Step 1: Calculate 10% of $85,420.
10% = 0.10
$85,420 × 0.10 = $8,542.00
Therefore, the Murphys will pay $8,542.00 in state/local taxes.
The correct answer is b. $8,542.00.