Question

If someone earns an annual salary of $70,000 and pays 30% in taxes, what would their annual take-home pay be? (1 point)
$70,000
$49,000
$40,000
$21,000

Answer 1

To calculate the annual take-home pay after taxes, you need to subtract the tax amount from the annual salary.

1. Calculate the tax amount:
\[
\text{Tax Amount} = \text{Annual Salary} \times \text{Tax Rate}
\]
\[
\text{Tax Amount} = \$70,000 \times 0.30 = \$21,000
\]

2. Subtract the tax amount from the annual salary to find the take-home pay:
\[
\text{Take-Home Pay} = \text{Annual Salary} - \text{Tax Amount}
\]
\[
\text{Take-Home Pay} = \$70,000 - \$21,000 = \$49,000
\]

Therefore, the annual take-home pay would be **$49,000**.