SOLUTION: A politican states, "i plan to cut your taxes. Each year for the next 4 years, I will reduce your taxes by 3% from the previous year.This will result in a total reduction of 12%'

Question 341731: A politican states, "i plan to cut your taxes. Each year for the next 4 years, I will reduce your taxes by 3% from the previous year.This will result in a total reduction of 12%'
Clearly evaluate the accuracy of the politians statement.
Support your response by assuming a taxpayer paid $2000 in taxes the year previous to the politician's election.
Answer by checkley77(12844) (Show Source): You can put this solution on YOUR website!
2000-.03*3000=2000-60=1940 year 1
1940-.03*1940=1940-58.20=1881.40 year 2
1881.40-.03*1881.40=1881.40-56.45=1824.95 year 3
1824.95-.03*1824.95=1824.95-54.74=1770.20
(2000-1770.20)/2000=229.80/2000=.1149 or 11.49% reduction in taxes.
Politicians always s t r e t c h the facts.
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