David is a resident of Hanover. He pays an annual tax of$90 plus 1.2% of his annual income. If David paid $846 in taxes, what was David's income. Please show all work.
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Let David's annual income be I.
The total tax David pays is $90 + (0.012)×I
We also know that David paid a grand total of $846 in taxes.
Therefore $90 + 0.012×I = $846
0.012×I = $846 - $90 = $756
∴I = ($756)/(0.012) = $63,000 per year.
David makes a lot more money than I ever earned! I wish I had majored in whatever he majored in!