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A messenger earns N2,640 per year and pays tax at the rate of 10k on a Naira. How much tax does he pay in a year?

A. N264
B. N2640
C. N26,400
D. N2,640,000

1 Answer

5 votes

Final answer:

To determine the annual tax paid by the messenger, the tax rate of 10 kobo per Naira was converted to a decimal (0.10) and multiplied by the annual earnings of N2,640, resulting in a tax amount of N264 for the year.

Step-by-step explanation:

The tax a messenger pays annually can be calculated by applying the tax rate to the annual earnings. Given that the messenger earns N2,640 per year and the tax rate is 10 kobo on a Naira, we first need to convert the tax rate to decimal form. Since 1 Naira is equivalent to 100 kobo, 10 kobo is 10/100 or 0.10 of a Naira. Now, to find the annual tax amount, we multiply the annual earnings by the tax rate:

Tax amount = Annual earnings × Tax rate = N2,640 × 0.10 = N264.

Therefore, the messenger will pay N264 in tax for the year.

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