Melodie's taxable income is $38,000 and she pays income tax of $4,370. If Melodie's taxable income increases to $40,000, she would pay taxes of $4,740. What is Melodie's marginal tax rate?
A. 22%
B. 18.5%
C. 12%
D. 14.66%
E. Some other amount
Ans: B. 18.5%
Business
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