Kathy works in a law office. Her annual salary is $42000. Kathy is paid monthly and pays an income tax rate of 20% on her earnings over $1000, plus $53.50. How much income tax does Kathy pay each month?

$8,453.50

Step-by-step explanation:

Annual salary = $42000

Income tax rate = 20% on her earnings over $1000 + $53.50

Income tax = 20% of $42000 + $53.50

= 20/100 × 42,000 + 53.50

= 0.2 × 42,000 + 53.50

= 8,400 + 53.50

= $8,453.50

Income tax = $8,453.50