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. (4 points)

Question

2 sentences using only words

Answer 1

To determine Priya's total income before tax, we can use the formula for calculating the tax deducted. The income tax deducted can be expressed as:

\[ \text{Tax Deducted} = \text{Total Income} \times \text{Tax Rate} \]

Given that Priya had $52.50 deducted and her tax rate is 12% (or 0.12 in decimal form), we can set up the equation:

\[ 52.50 = \text{Total Income} \times 0.12 \]

To find the Total Income, we can rearrange the equation:

\[ \text{Total Income} = \frac{52.50}{0.12} \]

Now, performing the calculation:

\[ \text{Total Income} = \frac{52.50}{0.12} = 437.50 \]

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

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Priya earned money through her job. She paid some of it as taxes according to her income tax rate.