Loretta is paid in euros. She is checking her tax bill for last year. The tax rates last year were as follows: • No tax on the first €3500 of earnings • Earnings in excess of €3500 and up to €10 500: taxed at a rate of 25% • Earnings above €10 500: taxed at a rate of 35% Last year, Loretta’s total earnings before tax were €34 500. How much tax did Loretta pay in total? You must show all your working.



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