Lillian earns $61,000 annually and pays 12-3/4% for state and local
taxes. How much tax does she pay annually?
a. $8,231.50
b. $6,970.75
c. $7,821.65
d. $7,777.50
First, we need to convert the tax rate to a decimal:
12-3/4% = 0.1275
Next, we can calculate how much tax Lillian pays annually:
$61,000 x 0.1275 = $7,777.50
Therefore, the answer is d. $7,777.50.