4
QuizMultiple Choice

Unit Test — Unit test

Question 4 • Personal Finance - EL3403

Mikkel pays a 4 percent state income tax on his earnings. If he earns $1,867, how much state income tax can he expect to pay?

Answer
A
$46.68
B
$74.68
C
$466.75
D
$746.80

Explanation

Convert 4 percent to a decimal: 4% = 0.04. Multiply Mikkel’s earnings by the tax rate: $1,867 × 0.04 = $74.68. Therefore, he can expect to pay $74.68 in state income tax, choice B.

AI-written and checked against the verified answer.

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