Question

Solve the following problem involving income tax. Show all your work. Priya had $52.50 deducted from their paycheck. If Priya’s income tax rate is 12%, find Priya’s total income before tax. (4 points)

2 sentences using only words

Answer 1

To determine Priya's total income before tax, we can use the formula for calculating the tax deducted. The income tax deducted can be expressed as:

\[
\text{Tax Deducted} = \text{Total Income} \times \text{Tax Rate}
\]

Given that Priya had $52.50 deducted and her tax rate is 12% (or 0.12 in decimal form), we can set up the equation:

\[
52.50 = \text{Total Income} \times 0.12
\]

To find the Total Income, we can rearrange the equation:

\[
\text{Total Income} = \frac{52.50}{0.12}
\]

Now, performing the calculation:

\[
\text{Total Income} = \frac{52.50}{0.12} = 437.50
\]

Therefore, Priya’s total income before tax is **$437.50**.

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Priya earned money through her job. She paid some of it as taxes according to her income tax rate.