If Jane Adams pays income taxes at a 35 percent rate, what would be her after-tax amount on $100 of interest income?

To determine the after-tax amount of Jane Adams' interest income, it is essential to calculate how much of her $100 interest income she effectively retains after paying income taxes at a rate of 35 percent.

First, calculate the amount of tax she would owe on the $100 of interest income. This is done by multiplying the income by the tax rate:

Tax Owed = Interest Income x Tax Rate

Tax Owed = $100 x 0.35 = $35

Next, subtract the tax owed from the total interest income to find the after-tax amount:

After-Tax Amount = Interest Income - Tax Owed

After-Tax Amount = $100 - $35 = $65

Thus, the after-tax amount that Jane retains from her interest income is $65. This calculation outlines the effect of income taxes on earnings, demonstrating how much of the earnings remain after fulfilling tax obligations.