Answer :
To determine the effective tax rate for a taxable income of \[tex]$95,600 using the provided piecewise function, follow these steps:
1. Identify the appropriate tax bracket:
Given that the taxable income is \$[/tex]95,600, it falls within the range \[tex]$89,076 to \$[/tex]170,050. According to the piecewise function, the corresponding formula to calculate the tax owed in this range is:
[tex]\[ f(x) = 0.24x - 6,104.50 \][/tex]
2. Calculate the tax owed:
Substitute \[tex]$95,600 as \( x \) in the formula: \[ f(95,600) = 0.24 \cdot 95,600 - 6104.50 \] Compute: \[ 0.24 \cdot 95,600 = 22,944 \] Subtracting the constant: \[ 22,944 - 6,104.50 = 16,839.50 \] Therefore, the tax owed for a taxable income of \$[/tex]95,600 is \[tex]$16,839.50. 3. Determine the effective tax rate: The effective tax rate is defined as the percentage of the taxable income that is paid as taxes. It is calculated using the formula: \[ \text{Effective Tax Rate} = \left(\frac{\text{Tax Owed}}{\text{Taxable Income}}\right) \times 100 \] Substitute the values: \[ \left(\frac{16,839.50}{95,600}\right) \times 100 \] Compute the division: \[ \frac{16,839.50}{95,600} \approx 0.1761 \] Convert the result to a percentage: \[ 0.1761 \times 100 = 17.61\% \] 4. Round the final answer to the nearest hundredth: The calculated effective tax rate is 17.61%. Thus, the effective tax rate for a taxable income of \$[/tex]95,600 is [tex]\(\boxed{17.61\%}\)[/tex].
[tex]\[ f(x) = 0.24x - 6,104.50 \][/tex]
2. Calculate the tax owed:
Substitute \[tex]$95,600 as \( x \) in the formula: \[ f(95,600) = 0.24 \cdot 95,600 - 6104.50 \] Compute: \[ 0.24 \cdot 95,600 = 22,944 \] Subtracting the constant: \[ 22,944 - 6,104.50 = 16,839.50 \] Therefore, the tax owed for a taxable income of \$[/tex]95,600 is \[tex]$16,839.50. 3. Determine the effective tax rate: The effective tax rate is defined as the percentage of the taxable income that is paid as taxes. It is calculated using the formula: \[ \text{Effective Tax Rate} = \left(\frac{\text{Tax Owed}}{\text{Taxable Income}}\right) \times 100 \] Substitute the values: \[ \left(\frac{16,839.50}{95,600}\right) \times 100 \] Compute the division: \[ \frac{16,839.50}{95,600} \approx 0.1761 \] Convert the result to a percentage: \[ 0.1761 \times 100 = 17.61\% \] 4. Round the final answer to the nearest hundredth: The calculated effective tax rate is 17.61%. Thus, the effective tax rate for a taxable income of \$[/tex]95,600 is [tex]\(\boxed{17.61\%}\)[/tex].