Below is a graph of the Murphys’ annual expenses. How much will the Murphys’ pay in state/local taxes if their gross annual household income is $85,420? A circle graph titled Murphy's Annual Expenses. Federal taxes, 24 percent; State/local taxes, 10 percent; Housing and household, 27 percent; Food, 7 percent; Medical care, 5 percent; Transportation, 9 percent; Recreation, 4 percent; Clothing, 5 percent; Other, 9 percent. a. $3,559.17 b. $8542.00 c. $20,500.80 d. $29,897.00