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Carys is checking her tax bill for the last year.

The tax rates were as follows:

No tax of the first £11 000 of earnings.

Earnings in excess of of £11 000 and up to £43 000 taxed at a rate of 20%.

Earnings in excess of £43 000 and up to £150 000 taxed at a rate of 40%.

Earnings over £150 000 taxed at a rate of 45%.

Last year Carys, earned £45 600 before tax.

How much tax did she pay in total.

Show your working.

Verified Answer :

schiou

£18240

since the amount she earned falls within the range of the tax rate 40%, multiply her earnings by 0.4.

£45600*0.4= 18240

The correct answer is:

£18,240

Explanation:

Carys earned £45,600.  The tax rate for any earnings between £43,000 and £150,000 is 40%.  

40% = 40/100 = 0.4; this makes 40% of 45600

0.4(45600) = 18240