Question

Dana has to pay 10% tax on any income above £18,000 per year. Dana is paid £24,000 annually. Calculate the amount of money she receives after tax each month.

Answer 1

Dana's monthly income after tax is £1,950.

Step-by-step explanation:

To calculate the amount of money Dana receives after tax each month, we need to find the amount of tax she has to pay and subtract it from her annual income. Dana's annual income is £24,000 and she has to pay 10% tax on any income above £18,000. So, the amount of income above £18,000 is £24,000 - £18,000 = £6,000. The tax on this amount is 10% of £6,000 which is £600. To find the amount of money Dana receives after tax each month, we can divide her after-tax annual income by 12: (£24,000 - £600) / 12 = £1,950.