Now suppose instead that housing credits are withdrawn gradually at a rate of $500 for each $1,000 that someone is earning above the wage limit of $28,500 per year. Assuming Layla earns an extra $2,000 per year above her original wage of $29,500 per year, how large will her housing credit be

Housing credit will be = $6000

Explanation:

Solution:

As, this question is not complete, it lacks essential data to proceed. But I have  found that data on internet and will be solving this question accordingly.

Data given:

Layla's wages per year = $29500

Housing credits = $7500

Layla's new income with Housing credit = $37000

As given in question:

Layla earns an extra $2000 per year above her original wage.

New Layla's income per year = $31500

So, now,

Layla's income without housing credit = $31500

Wage limit allowed = $28500

So, Layla earns $3000 more than wage limit

Hence,

$500 for $1000

$1500 for $3000

So, $3000 will be deducted from the housing credit

So,

Layla's total income = $31500 + ($7500 - $1500)

Layla's Total income = $31500 + $6000

Layla's Total income = $37500

Where,

Housing credit will be = $6000

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explanation:

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