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Suppose in Fiscalville there is a 5 percent tax on the first $10,000 of income, but a 15 percent tax on earnings between $10,000 and $20,000 and a 25 percent tax on income between $20,000 and $30,000. Any income above $30,000 is taxed at 35 percent.
Instructions: Round your answers to the nearest whole number.
a. If your income is $50,000, how much will you pay in taxes? $.
b. Determine your marginal tax rate. percent
c. Determine your average tax rate. percent
d. Is this a progressive tax?
A retail outlet is being designed in a strip mall in Nebraska. For this outlet, the installed fiber glass insulation to protect against heat loss in the winter and heat gain in the summer will cost an estimated $90,000. What is the present equivalent..
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