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Math
CalculusFinite Mathematics and Applied Calculus (MindTap Course List)7th Edition

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Chapter 11.2, Problem 28E
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Finite Mathematics and Applied Cal...

7th Edition
Stefan Waner + 1 other
ISBN: 9781337274203

Solutions

Chapter
Section
Problem 1E
Problem 2E
Problem 3E
Problem 4E
Problem 5E
Problem 6E
Problem 7E
Problem 8E
Problem 9E
Problem 10E
Problem 11E
Problem 12E
Problem 13E
Problem 14E
Problem 15E
Problem 16E
Problem 17E
Problem 18E
Problem 19E
Problem 20E
Problem 21E
Problem 22E
Problem 23E
Problem 24E
Problem 25E
Problem 26E
Problem 27E
Problem 28E
Problem 29E
Problem 30E
Problem 31E
Problem 32E
Problem 33E
Problem 34E
Problem 35E
Problem 36E
Problem 37E
Problem 38E
Problem 39E
Problem 40E
Problem 41E
Problem 42E
Problem 43E
Problem 44E
Problem 45E
Problem 46E
BuyFindarrow_forward

Finite Mathematics and Applied Cal...

7th Edition
Stefan Waner + 1 other
ISBN: 9781337274203
Textbook Problem

Taxation Schemes To raise revenues during the recent recession, the governor of your state proposed the following taxation formula:

T ( i ) = 0.001 i 0.5 , where i representstotal annual income earned by an individual in dollars and T ( i ) is the income tax rate as a percentage of total annual income. (Thus, for example, an income of $50,000 per year would be taxed at about 22%, while an income of double that amount would be taxed at about 32%.)19

a. Calculate the after-tax (net) income N ( i ) anindividual can expect to earn as a function of income i .

b. Calculate an individual’s marginal after-tax income at income levels of $100,000 and $500,000.

c. At what income does an individual’s marginal after-tax income become negative? What is the after-tax income at that level, and what happens at higher income levels?

d. What do you suspect is the most anyone can earn after taxes? (See the footnote.)

(a)

To determine

The expected after tax (net) income N(i) to be earned by an individual as a function of income i, where the taxation formula is T(i)=0.001i0.5.

Explanation

Given Information:

The taxation formula by the state governor to raise the revenue during the recession is T(i)=0.001i0.5 where, i is the total annual income (in dollars) and T(i) is income tax rate as a percentage of total annual income.

Consider the taxation formula, T(i)=0.001i0.5.

The expected value of net annual income before tax, is 1.

Evaluate the expected value of net income after tax, by subtracting the tax from net income and multiply by i for annual income

(b)

To determine

To calculate: The marginal after tax income of an individual at income levels of $1,00,000 and $5,00,000 where the taxation formula is T(i)=0.001i0.5.

(c)

To determine

To calculate: The level at which the marginal after tax income of an individual become negative and the income at the level and what about higher income levels where the taxation formula is T(i)=0.001i0.5.

(d)

To determine

The maximum income that can be earned after taxes where the taxation formula is T(i)=0.001i0.5.

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Problem 29E
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Elementary Geometry for College Students

The paper referenced in Exercise 14.16 used a multiple regression model to describe the relationship between y ...

Introduction To Statistics And Data Analysis

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