Let's break down the problem and solve it step by step. --- ### **Step 1: Find the new amount of cash in the households after the tax increase** **Explanation:** - Initial cash = $8,000 - Taxes increase by 10%, so taxes paid = $8,000 × 10% = $800 - New cash after paying taxes = $8,000 - $800 = **$7,200** --- ### **Step 2: Calculate the new deposit amount in the bank** **Explanation:** - Households deposit 80% of their cash in the bank. - Amount to be deposited = 80% of $7,200 = 0.80 × $7,200 = **$5,760** --- ### **Step 3: Calculate the new amount of cash kept on hand** **Explanation:** - The remainder is kept as cash on hand. - Cash on hand = New cash after taxes - New deposit = $7,200 - $5,760 = **$1,440** --- ## **Final Answer (rounded to two decimal places):** | New amount of cash on hand | $1,440.00 | |---------------------------|-----------|