Applied Math Unit 1 Test Review

What is the social security tax rate?

• None of these

• 6.2%

• 62%

• 0.62%

Which of these could be used to determine the amount you pay in medicare tax if your salary is $60,000?

• None of these

• 0.62%

• 0.0145 • 60,000

Answer explanation

Income tax rate: 1.45% = 0.0145

To find 1.45% OF a number, we multiply 0.0145 x that number.

Income tax is a progressive tax because...

• Upper-income families pay a larger share of their income

• Poor and middle-income pay a larger share of their income

• Everyone pays the same share.

• None of these

Which of these shows function ƒ, the amount you pay in sales tax (in Massachusetts) when you eat at a restaurant and your bill is x dollars?

• None of these

• f(x) = 0.625x

• f(x) = 1.625x

• f(x) = 0.0625x

Answer explanation

MA Sales tax is 6.25%

6.25% = 0.0625

To find 6.25% OF a number, we multiply 0.0625 x that number.

If your yearly gross income is $11,000, you pay $1,100 in federal income tax.

• True

• False

True or false: 6.2% and 0.62 are equivalent (in other words 6.2% = 0.62).

• True

• False

Answer explanation

6.2% = 0.062

Both the worker and the employer pay payroll taxes.

• True

• False

Match each description with the correct function rule

• f(x) = 0.062x

• The sales tax you pay in MA if you buy a computer for x dollars.

• f(x) = 0.60x

• The social security tax you pay if your salary is x dollars

• f(x) = 0.0625x

• The sale price of a pair of sneakers that regularly costs x dollars but is on sale for 40% off.

• f(x) = 0.0145x

• The amount you pay in medicare tax if your salary is x dollars

Use the diagram above to figure out how much income tax a person pays if their salary is $58,000.

Mathematical Equivalence

ON

Answer explanation

58,000 - 44,725 = 13,275

0.22 x 13,275 = 2,920.50

44,725 - 11,000 = 33,725

0.12 x 33,725 = 4,047

11,000 - 0 = 11,000

0.1 x 11,000 = 1,100

1,100 + 4,047 + 2,920.50

= $8067.50

Worker A makes $10,000 per year. Worker B makes $9,000. Since their incomes are both below $11,000, they pay the same amount in federal income tax.

• True

• False

Answer explanation

They pay the same RATE but different amounts:

Worker A: 0.10 x 10,000 = $1,000

Worker B: 0.10 x 9,000 = $900