Question: If the personal income tax rate is lowered from 42% to 32%, what is the differential savings for a tax payer having an annual income before tax to the tune of $42400?\nOptions:\n(A) $3500\n(B) $5000\n(C) $4240\n(D) $7000\n(E) $10000 Let's think first. Some random reasoning:
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Saving = (42-32)% of 42400 = 4240. The final answer: (C).
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