Math Business S3. 4 Caltec S.3

BUSINESS MATHEMATICS The tax structure in a certain country on the taxable income is as follows: Income (Shs) per month Tax rates % 1 – 130,000 Tax free 130,001 – 280,000 9.0 280,001 – 480,000 12.5 480,001 – 880,000 20.0 880,001 and more 30.0 Mr. Sebwalunyo’s gross income is Shs 978,000. The allowances include; Transport: Shs 75,000 per month Family: a tenth of gross pay. Medical: Shs 150,000 per annum Insurance : Shs 15,000 per month Housing: Shs 80,000 per month. Determine Mr. Sebwalunyo’s; total monthly allowances taxable income tax paid annually net pay. The amount on Shs.720,000 deposited for 3 years, simple interest is Shs 1,044,000. Determine the rate per annum A vendor receives commission of 5% on the first total sales up to Shs 100,000, and 8% on the total sales exceeding Shs 100,000. Determine the total sales of the vendor who received Shs 16,200 commission. Tom’s gross monthly salary is sh 1,200,000 with the following allowances Medical sh 600,000 per annum Marriage one – fifth of the gross monthly income Unmarried sh 200,000 per month Family allowance for one child at the following rates A child below 10 years sh 100,000 A child above 10 years sh 150,000 Tom is married with two sons; one aged 7 years and the other 12 years. The monthly income tax is calculated as follows; Taxable income (shs) Tax Rate (%) 01 – 300,000 300,001 – 500,000 500,001 – 900,000 900,0001 and above 20 25 30 40 Calculate Tom’s monthly taxable income (05marks) income tax (05marks) net income (02marks)