When you buy something,it actually costs more than you may think-at least in terms of how much money you must earn to buy it. For example, if you pay 23% of your income in taxes, how much money would you have to earn to buy a used car for $7,700?
Accepted Solution
A:
Answer:We need to earn $10,000 to buy that car.Step-by-step explanation:Let initial bank account balance = 0;Suppose our income is $x.Since 23% of income shpould be paid in taxes,Money paid in taxes =[tex]\frac{23}{100} \times[/tex][tex]x[/tex]After paying taxes,Money in our account = Income - Money paid in taxes;Money in our account = x - [tex]\frac{23}{100}\times[/tex] [tex]x[/tex]Money in our account = [tex]\frac{77}{100}\times[/tex] [tex]x[/tex]. (equation 1)Given,Price of the car to be bought = $7700 (equation 2)To be able to buy that car,Money in account = Price of the carFrom equation 1 and equation 2,[tex]\frac{77}{100}\times[/tex][tex]x = 7700[/tex][tex]x=\frac{7700\times100}{77}[/tex]Therefore,x = $10000.Therefore We need to earn $10000 to buy the car.