To find Priya's total income before tax, we can start with the information we have:
- Amount deducted from the paycheck (tax withheld) = $52.50
- Income tax rate = 12%
The amount deducted as income tax can be expressed as a percentage of the total income before tax. We can set this up with the following formula:
\[ \text{Tax Withheld} = \text{Total Income Before Tax} \times \text{Tax Rate} \]
We can rearrange this formula to find the Total Income Before Tax:
\[ \text{Total Income Before Tax} = \frac{\text{Tax Withheld}}{\text{Tax Rate}} \]
Now, let's plug in the values:
\[ \text{Total Income Before Tax} = \frac{52.50}{0.12} \]
Now, calculate the total income before tax:
\[ \text{Total Income Before Tax} = \frac{52.50}{0.12} = 437.50 \]
Thus, Priya's total income before tax is $437.50.