Subjects algebra

Monthly Earnings Tax

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1. **State the problem:** Lydia earns 3917 each month before tax. She pays no tax on 987, 20% tax on 2875, and 40% tax on the rest. We need to find how much money she has left after tax. 2. **Calculate the rest of the income:** The rest is total income minus the sum of the tax-free and 20% taxed parts. $$3917 - (987 + 2875) = 3917 - 3862 = 55$$ 3. **Calculate tax paid on each part:** - No tax on 987, so tax = 0. - 20% tax on 2875: $$0.20 \times 2875 = 575$$ - 40% tax on 55: $$0.40 \times 55 = 22$$ 4. **Calculate total tax paid:** $$575 + 22 = 597$$ 5. **Calculate amount left after tax:** $$3917 - 597 = 3320$$ **Final answer:** Lydia has 3320 left after tax is taken out.