A progressive tax system has people pay no tax on incomes up to $10,000, 12% of income between

$10,000 and $20,000, and 20% of all income above $20,000.

a. Set up a piecewise-linear model for this progressive tax structure. Be sure to specify your

variables.

b. What does a person with an income subject to tax of $25,000 pay in taxes?

c. How much tax does a person with income subject to tax of $30,000 pay?

D. ABC Bank offers a checking account with a minimum balance of $1,200, and 1.4% interest on any

amount over $1,200. Best Bank, on the other hand, pays 1.08% on the entire balance as long as the

account never dips below $1,200.

E.If you maintain a balance of $2,000, how much interest do you earn at Acme Bank, and how

much at Best Bank?

F. If you maintain a balance of $10,000, how much interest do you earn at Acme Bank, and how

much at Best Bank?

G. Find the balance after 12 years if $6,000 is invested at 4.75% interest, compounded annually.