Because he’s taxed by his home planet, Mork pays a tax rate of 30% on his income, while Mindy pays...
Because he’s taxed by his home planet, Mork pays a tax rate of 30% on his income, while Mindy pays a rate of only 20% on hers. If Mindy earned 3 times as much as Mork did, what was their combined tax rate?
Answer/Solution
22.5%
Steps/Work
Say Morks income is - 100
So tax paid will be 30
Say Mindys income is 3*100 = 300
So tax paid is 20% * 300 = 60
Total tax paid = 30+60 = 90.
Combined tax % will be 90/100+300 = 22.5%
So tax paid will be 30
Say Mindys income is 3*100 = 300
So tax paid is 20% * 300 = 60
Total tax paid = 30+60 = 90.
Combined tax % will be 90/100+300 = 22.5%