Erin lytle's gross pay is $26,300. she takes a married exemption of $4,000. her state income tax rate is 5.5%. how much will she pay in state income tax?

Given

Erin Lytle's gross pay is $26,300

She takes a married exemption of $4,000

state income tax rate is 5.5%

Find out she pay in state income tax

To proof

Gross pay =  $26,300

married exemption =  $4,000

 Let the  she pay in state income tax = x

5.5 % written in the simpler form

=

= 0 .055

than the equation becomes

x =  0.055 ( 26300 - 4000)

x =  0.055× 22300

x = $1226.5

Erin Lytle  pay in state income tax is $ 1226.5

Hence proved

$1,226.50

Step-by-step explanation:

Erin Lytle's gross pay = $26,300

She takes a married exemption = $4,000

Her state income tax rate = 5.5%

She pay in state income tax = 5.5% of  (26,300 - 4,000)

= 5.5% × 22,300

=   × 22,300

= 0.055 × 22,300

= $1,226.50

She pay $1,226.50 in state income tax.

required rate of return = 0.166 = 16.6%

step-by-step explanation:

under the capital asset pricing model (capm), the required or expected rate of return for a particular security or asset is given using the formula:

required rate of return = risk-free rate + beta*(market risk premium)

we are given that;

risk-free rate = 4% = 0.04

beta = 1.4

market risk premium = 9% = 0.09

we simply plug these values into the above formula;

required rate of return = 0.04 + 1.4*(0.09)

required rate of return = 0.04 + 0.126

required rate of return = 0.166 = 16.6%