In 2010, Rooney got his first job and paid $7,004.18 in federal income tax. For the next 6 years, his income

taxes increased by 1.5% each year. When Rooney finishes paying his taxes for 2016, how much will he

have paid in income taxes since he first got the job in 2010?

In this question, we're trying to find how much he paid in income taxes since 2010.

In this case, we would use the appreciation formula:

V = P (1 + r) ^n

v = new value

p = principal

r = rate

n = number of years

Plug in your variables to the equation:

V = 7,004.18 (1 + 0.015) ^6

Solve:

V = 7,004.18 (1 + 0.015) ^6

V = 7,004.18 (1.015) ^6

V = 7,004.18 (1.093443263942640625)

V = 7,658.673

V = 7,658.67

This means that he would've paid $7,658.67 in taxes since 2010

Answer:

$7,658.67