FAU FIN 3403 Average, Marginal Rates & Rounding Errors - I had a question on how to calculate the average and marginal tax rate I'm not sure on how

FAU FIN 3403 Average, Marginal Rates & Rounding Errors - I...

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I had a question on how to calculate the average and marginal tax rate. I'm not sure on how to calculate either. For the average tax rate this was my calculations and I got it wrong. 50000(.15)=7500 25000(.25)=6250 25000(.34)=8500 161000(.39)=62790 avg tax=85040/261000=.33 The answer I get from your numbers (which are correct) is similar at .3258 or 32.6%. Have you tried not rounding? I will also check to make sure again that this chapter has the correct tolerance levels right

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