Karole's income rises from $50,000 to $75,000 and her income tax increases from $8,000 to $9,500.Her average tax rate is 6%.

Name: Karole's income rises from $50,000 to $75,000 and her income tax increases from $8,000 to $9,500.Her average tax rate is 6%.
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Question

​Karole's income rises from $50,000 to $75,000 and her income tax increases from $8,000 to $9,500.Her average tax rate is 6%.

Quizplus · Accepted Answer

Karole's average tax rate after the increase is calculated by dividing the total tax paid ($9,500) by her new income ($75,000), which equals 12.67%, not 6%.

​Karole's Income Rises from $50,000 to $75,000 and Her Income

Karole's Income Rises from $50,000 to $75,000 and Her Income