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In a certain country, the Income Tax (IT) is deducted from monthly wages as follows:

• For salaries up to 1,500.00, TI is zero.

• The portion of salary between 1,500.00 and 3,500.00 is taxed at 12%.

• portion of salary that exceeds 3,500.00 is taxed at 20%.

Therefore, a worker who receives a wage of the amount of 1 800.00, will pay tax on the amount presented CORRECTLY in the alternative:

a) 212.00. b) 216.00. c) 218.00. d) 220.00. e) 222.00.

I took a test, the institution that prepared the test declared that the correct alternative is b, but I understood that I should calculate 12% on the difference of 1800 - 1500 = 300, which results in $36 and is not part of the alternatives

Yaacov NNNNM
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    Please clarify your specific problem or provide additional details to highlight exactly what you need. As it's currently written, it's hard to tell exactly what you're asking. – HeroZhang001 Feb 18 '23 at 14:09
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    Dollar signs play an important role in the formatting software used by this site...it's best to avoid them entirely if you aren't trying to format properly. – lulu Feb 18 '23 at 14:12
  • @HeroZhang001 I wanted someone to show me that the institution that made the test is wrong. I couldn't format the text correctly, I don't know how to do this formatting – Yaacov NNNNM Feb 18 '23 at 14:13
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    To your question, the rules are far from clear but perhaps they mean to say that, once you are in a certain range, the entire amount becomes taxable. And $.12\times 1800=216$ – lulu Feb 18 '23 at 14:18
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    If your bullet points were copied as worded in the test then I agree with you. It clearly states that the portion greater than 1500 should be taxed at $12%$. – John Douma Feb 18 '23 at 14:18

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