Mr. Ronaldo earns $46,650 in annual gross income. He will pay 7% in income tax this year. What is the amount of income tax that Mr. Ronaldo will pay?

Understand the Problem

The question asks us to calculate the amount of income tax Mr. Ronaldo will pay, given his annual gross income and the income tax rate. We need to calculate 7% of $46,650.

Answer

$3265.50$

Steps to Solve

Convert the percentage to a decimal

To convert a percentage to a decimal, divide by 100:

$7% = \frac{7}{100} = 0.07$

Calculate the income tax amount

Multiply the annual gross income by the decimal equivalent of the income tax rate:

$Income\ Tax = Annual\ Gross\ Income \times Income\ Tax\ Rate$

$Income\ Tax = $46,650 \times 0.07$

$Income\ Tax = $3265.50$

$3265.50$

More Information

Mr. Ronaldo will pay $3265.50 in income tax.

Tips

A common mistake is forgetting to convert the percentage to a decimal before multiplying. For example, multiplying $46,650 by 7$ instead of $0.07$ would lead to a much larger and incorrect income tax amount.

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