Answer:
$2780
Step-by-step explanation:
Given an income tax of 10% of the first $7000 and 16% of all after that, you want the tax on $20,000.
Manuel's income is more than $7000, so the tax is computed in two parts.
First $7000
The tax on the first $7000 of income is 10%:
tax = $7000 × 0.10 = $700
Amount Over $7000
The amount over $7000 is ...
$20,000 -7,000 = $13,000
The tax on that amount is 16%:
tax = $13,000 × 0.16 = $2080
Total tax due
The tax Manuel must pay is the total of these two amounts:
$700 +2080 = $2780
Manuel must pay $2780 in income tax for last year.