Question

The following table details the working populations, income tax rates, and average salary (in equivalent US dollars) for Peru and Chile.

Country
Workforce
Average Salary ($)
Income Tax Rate
Peru
10,618,704
8,714
24.1%
Chile
7,210,595
14,622
31.4%

Based on the information in the table, how do the annual tax revenues of Peru and Chile compare to one another?
a.
Peru collects $294,980 more than Chile.
b.
Peru collects $63,408,109 more than Chile.
c.
Chile collects $12,901,933,434 more than Peru.
d.
Chile collects $10,805,998,234 more than Peru.


Please select the best answer from the choices provided

A
B
C
D

Answer 1

D

Calculations:
- Peru revenue = 10,618,704 * $8,714 * 0.241 ≈ $22,300,064,184
- Chile revenue = 7,210,595 * $14,622 * 0.314 ≈ $33,106,062,508
- Difference (Chile − Peru) ≈ $10,805,998,234 (choice D).