The following table details the working populations, income tax rates, and average salary (in equivalent US dollars) for Peru and Chile.CountryWorkforceAverage Salary ($)Income Tax RatePeru10,618,7048,71424.1%Chile7,210,59514,62231.4%Based on the information in the table, how do the annual tax revenues of Peru and Chile compare to one another?

Estimate each country’s tax revenue by multiplying its workforce by its average salary and then by its tax rate. Peru’s estimated revenue is 10,618,704 × $8,714 × 0.241 = about $22,300,064,184. Chile’s is 7,210,595 × $14,622 × 0.314 = about $33,106,062,508. Chile collects about $10.806 billion more, so choice D is the intended answer. The difference from the amount printed in choice D is $90, likely a small arithmetic or typographical error.

AI-written and checked against the verified answer.