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In lesson #1 you learned that a spreadsheet is a grid of rows (1,2,3...) and columns ( A,B,C...) that defines a rectangle of cells. Each cell (e.g. C3) can contain a number(100), some text such as "How Much Tax?" or a formula such as (c2*.28) or @sum(c3..c9). You get to the menus by typing a forward slash (/).

## ACTIVITY: How Much Tax Would You Pay?

The assignment is to figure out what fraction of his income a hypothetical self employed person in the USA pays in taxes given a bunch of different taxes.

Different values are given as functions of other values. You need to calculate some intermediate values, and put only taxes in column 3 so you can add up that column. Here are the numbers to plug into the spreadsheet:

• Yearly Income: 50,000
• Federal Income tax: 28%
• State Income Tax: 13%
• Social Security: 15%
• House Value is 6 times income.
• Property Tax is 2% of the house value.
• Taxable spending is 20% of income.
• The sales tax rate is 9%.
Calculate the following:
• Intermediate values as needed (like value of house and money spent at store)
• Total taxes paid.
• Percentage of Yearly Income spent on taxes (take fraction and multiply by 100).
• How much money left over after taxes each year.
• How much is left each month after taxes.
Hints: Computations can start with a left ( and end with a right ). * is multiply and / is divide. @sum(c3..c9) totals cells c3 through c9. @round(c12/12,0) rounds the result to a whole number. F1 key gives help.

Now change the Yearly Income value and see what happens. Advanced work: This spreadsheet would be better if the Federal and State income tax rates adjusted per your income, as in reality. Make Federal 10% above \$10,000, 20% and \$30,000 and 30% at \$50,000. Make State 3% above \$10,000, %6 at \$30,000 and 13% at \$50,000.