Question 767104
A taxplayer is allowed 1/10 th of his income as taxfree and pays 15% on the remainder. If he pays $450.00 tax, what is his income?  

Ans:
Let total income be x.
1/10 of income is tax-free. So only 9/10 or 0.9*x is taxable.
On this income he pays tax of 15%.

So tax as a portion of income = 0.9* x *15/100 = 0.135*x

This amount is given to be $450

0.135*x = 450

x = 450/0.135 = $3333.33

Total income = {{{highlight(3333.33)}}} dollars.

:)