At the Acme Cement Company, employees contribute to a welfare fund at the rate of 4% of the first $1000 earned, 3% of the next $1000, 2% of the next $1000 and 1% of any additional income. What will Mr. Morris contribute in a year in which he earns $20,000?

A)290
B)200
C)90
D)260
E)240

So he earns 20,000.
He pays 4% of the first 1000 earned = 40 dollars
He pays 3% of the next 1000 earned = 30 dollars
He pays 2% of the next 1000 earned = 20 dollars
He pays 1% of the remaining income (17,000) = 170 dollars

Add them up = 260

2 answers

correct , so D