Question

Romeo earns $4000 per month. He gets a tax-free allowance of $10 000 per year and pays income tax 25% on the rest. How much TAX will he pay in an year?

please answer with steps​

Answer 1

Answer:

Given details are,

Principal (p) = Rs 57600

Rate (r) = 12 ½ % per annum = 25/2×2% = 25/4% = 12.5/2% (half yearly)

Time (t) = 1 ½ years = (3/2) × 2 = 3 half years

By using the formula,

A = P (1 + R/100) n

= 57600 (1 + 12.5/2×100)3

= 57600 (212.5/200)3

= Rs 69089.06

∴ Amount is Rs 69089.06