Holly’s gross pay after two weeks of work is $1,475. Her income after taxes is $1,321.60. To the nearest tenth, find Holly’s income tax rate.(1 point)

Question

Responses

11.4%
11.4%

10%
10%

10.6%
10.6%

10.4%
10.4%

Answer 1

To find Holly's income tax rate, we first need to determine how much was taken out in taxes.

1. Calculate the amount of taxes deducted from her gross pay: \[ \text{Taxes} = \text{Gross Pay} - \text{Net Pay} \] \[ \text{Taxes} = 1475 - 1321.60 = 153.40 \]

2. Now, calculate the income tax rate using the formula: \[ \text{Tax Rate} = \frac{\text{Taxes}}{\text{Gross Pay}} \times 100 \] \[ \text{Tax Rate} = \frac{153.40}{1475} \times 100 \] \[ \text{Tax Rate} \approx 10.4% \]

Therefore, to the nearest tenth, Holly’s income tax rate is 10.4%.