A problem on percentages

Question

  Diana invest $25,000 in the bank in at the beginning of the year. She will receive 7% interest at the end of the year but she will have to pay a 16% tax on the interest received.

How much interest will Diana earn after she pays the tax?

What percent of die Anna's investment is the interest after paying the tax?

Please answer at 6th grade level, thanks!

Answer 1

Answer to first question: $1,470

Step 1: Multiply $25,000 by .07 to get $1,750.

Step 2: Multiply $1,750 by .16 to get $280.

Step 3: Subtract $1,750 by $280 to get $1,470.

 

Answer to second question: 5.8%

Step 1: Divide $1,470 by $25,000 to get .058.