Solve the following problem involving income tax. Show all your work. Priya had $52.50 deducted from their paycheck. If Priya's income tax rate is 12% find Priya's total income before tax

Answer 1

To find Priya's total income before tax, we need to determine what amount of income would result in a $52.50 tax deduction given a 12% income tax rate.

Let's denote Priya's total income before tax as "I". With an income tax rate of 12%, the amount of tax Priya pays is 0.12 * I. We know that this amount is equal to $52.50, which is the amount deducted from her paycheck for income tax.

So we can set up the equation:
0.12 * I = $52.50

To solve for I, we'll divide both sides of the equation by 0.12:
I = $52.50 / 0.12

I = $437.50

Therefore, Priya's total income before tax is $437.50.