Math You live in a state that has the following tax schedule:

Taxable Income Rate

$0–$6,999 no tax 7,000–14,999 5%

15,000–24,999 6%

25,000 and over 7%

Your state allows everyone $2,000 of exemptions from total income to arrive at taxable income. Your total income this year is only $12,000 because of work lost due to illness. Your friend’s total income is $19,000.

a. What is your tax this year? What is your friend’s tax?

b. What is the actual tax rate you and your friend paid this year based on your total incomes?