Question

$\text{Adam donates}\$15,000.$

From the graph given above, Adam pays a tax of for his donation amount.

• A. $\$7,500$
• B. $\$4,500$
• C. $\$10,500$
• D. $\$13,500$

Answer 1

The correct option is A $\$7,500$


You know, Tax rate = Unit rate = Slope = $\frac{y_2-y_1}{x_2-x_1}$
From the graph, consider the points (2, 1) and (3, 1.5).

$\text{∴ Slope = Unit rate =}\frac{1.5-1}{3-2}$
$=\frac{0.5}{1}$
$=0.5$

So, Tax rate applicable will be
$=Slope\times 100$
$=0.5\times 100$
$=50\%$

$\text{Adam donates}\$15000.$

Hence, Adam will pay tax of
$=\$15000\times 50\%$
$=\$15000\times \frac{50}{100}$
$=\$7500$

$\text{∴ Adam pays a tax of}\$7500\text{on his}$
$\text{donation amount.}$