A single taxpayer, earns $75,000 in taxable income and $10,000 in interest from an investment in City of Heflin bonds. (Use the U.S Tax Rate Schedule below)

Required:

3. What is his effective tax rate?

Please show your steps and solve in Excel. Do not round intermediate calculations.

2023 Tax Rate Schedules

IndividualsSchedule X-Single

If taxable income is over:But not over:The tax is:$ 0$ 11,00010% of taxable income$ 11,000$ 44,725$1,100 plus 12% of the excess over $11,000$ 44,725$ 95,375$5,147 plus 22% of the excess over $44,725$ 95,375$ 182,100$16,290 plus 24% of the excess over $95,375$ 182,100$ 231,250$37,104 plus 32% of the excess over $182,100$ 231,250$ 578,125$52,832 plus 35% of the excess over $231,250$ 578,125$174,238.25 plus 37% of the excess over $578,125

Schedule Y-1-Married Filing Jointly or Qualifying surviving spouse

If taxable income is over:But not over:The tax is:$ 0$ 22,00010% of taxable income$ 22,000$ 89,450$2,200 plus 12% of the excess over $22,000$ 89,450$ 190,750$10,294 plus 22% of the excess over $89,450$ 190,750$ 364,200$32,580 plus 24% of the excess over $190,750$ 364,200$ 462,500$74,208 plus 32% of the excess over $364,200$ 462,500$ 693,750$105,664 plus 35% of the excess over $462,500$ 693,750$186,601.5 plus 37% of the excess over $693,750

Schedule Z-Head of Household

If taxable income is over:But not over:The tax is:$ 0$ 15,70010% of taxable income$ 15,700$ 59,850$1,570 plus 12% of the excess over $15,700$ 59,850$ 95,350$6,868 plus 22% of the excess over $59,850$ 95,350$ 182,100$14,678 plus 24% of the excess over $95,350$ 182,100$ 231,250$35,498 plus 32% of the excess over $182,100$ 231,250$ 578,100$51,226 plus 35% of the excess over $231,250$ 578,100$172,623.5 plus 37% of the excess over $578,100

Schedule Y-2-Married Filing Separately

If taxable income is over:But not over:The tax is:$ 0$ 11,00010% of taxable income$ 11,000$ 44,725$1,100 plus 12% of the excess over $11,000$ 44,725$ 95,375$5,147 plus 22% of the excess over $44,725$ 95,375$ 182,100$16,290 plus 24% of the excess over $95,375$ 182,100$ 231,250$37,104 plus 32% of the excess over $182,100$ 231,250$ 346,875$52,832 plus 35% of the excess over $231,250$ 346,875$93,300.75 plus 37% of the excess over $346,875