Solve the Equation and Express the Answer to the Nearest

question 18

Essay

Solve the equation and express the answer to the nearest hundredth. __________

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Definitions:

Average Tax Rate

The ratio of the total amount of taxes paid to the total taxable income, representing the average portion of income that is paid as tax.

Progressive Tax

Progressive tax is a taxation system where the tax rate increases as the taxable amount or income increases, placing a higher burden on those with higher incomes.

Average Tax Rate

The ratio of the total amount of taxes paid to the total tax base (taxable income or spending), essentially reflecting the percentage of income that is paid in taxes.

Marginal Tax Rate

The rate at which the next dollar of taxable income is taxed.