Question

Ria has to pay 20% tax on any income above £11,000 per year.

Ria's salary before tax is £3,000 per month.
Calculate the amount of money she receives after tax each year.

Answer 1

£28,800

Explanation:

Given:

• Ria has to pay 20% tax on any income above £11,000 per year. Her salary before tax is £3,000 per month.

To find:

• Amount of money she receives after tax each year.

Solution:

Ria's salary before tax is £3,000 per month.

(i.e) £12 * 3,000/year = £36,000.

Now she has to pay 20% tax.

(i.e) 80/100 * 36,000 = £28,800

Hence, Ria receives £28,800 each year after tax.