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.
Monthly Earnings Tax
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