Future Business Leaders of America (FBLA) Business Calculations Practice Test

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Dive into the FBLA Business Calculations Test. Sharpen your analytical skills with multiple-choice questions and gain insights with detailed explanations. Excel in your exams!

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What percentage is represented by a tax rate of $4 per $100 of taxable income?

4%
0.04%
0.4%
40%

The correct answer is: 4%

To determine the percentage represented by a tax rate of $4 per $100 of taxable income, it's essential to express the tax as a fraction of the total income. The tax rate is given as $4 on every $100. To find the percentage, you can set up the calculation as follows: 1. Divide the amount of tax ($4) by the taxable income ($100). 2. This calculation gives you the fraction of the income that is taken as tax: $ \frac{4}{100} $. 3. To convert this fraction into a percentage, multiply by 100. So, $ \frac{4}{100} \times 100 = 4\% $. Thus, the tax rate of $4 per $100 of taxable income equates to 4%. This shows how to convert a rate expressed in dollars into a percentage, clarifying the connection between the two forms of representation.