Linda's estate is worth $225,000 the inheritance tax is 7% and they would deduct it from the estate before giving her the money

Question

How much money will she receive?

Answer 1

To calculate how much money Linda will receive after the inheritance tax is deducted, we first need to determine the amount of tax that will be taken from the estate.

1. Calculate the inheritance tax: \[ \text{Inheritance Tax} = \text{Estate Value} \times \text{Tax Rate} \] \[ \text{Inheritance Tax} = 225,000 \times 0.07 = 15,750 \]

2. Subtract the inheritance tax from the total estate value: \[ \text{Amount Received} = \text{Estate Value} - \text{Inheritance Tax} \] \[ \text{Amount Received} = 225,000 - 15,750 = 209,250 \]

So, Linda will receive $209,250 after the inheritance tax is deducted.