Question

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

Answer 1

10% of $85,420 = 0.10 × 85,420 = $8,542.00, so answer: b.