Name: Meaning of Cost Price and Selling Price
Uploaded: 2019-07-19
Duration: 5 min 33 s
Description: In this interesting video, we will understand the meaning of cost price and selling price. We will also find the profit and loss using this.

Question

Use the tax table below to answer the question that follows.

Single person (No dependants)
Taxable income	Income tax payable
$$ 0 - $ 8375$	$10 %$ of the amount over $$ 0$
$$ 8375 - $ 34000$	$$ 837.50 + 15 %$ of the amount over $$ 8375$
$$ 34000 - $ 82400$	$$ 4681.25 + 25 %$ of the amount over $$ 34000$
$$ 82400 - $ 171850$	$$ 16781.25 + 28 %$ of the amount over $$ 82400$
$$ 171850 - $ 373650$	$$ 41827.25 + 33 %$ of the amount over $$ 171850$
$$ 373650 +$	$$ 108421.25 + 35 %$ of the amount over $$ 373650$

Cecelia earned $$ 30000$ in taxable income in this year. Her employer deducts $$ 320.25$ income tax per month from her salary. How much is the amount due at the end of the year?

Accepted Answer

Given,

Single person (No dependants)

Taxable income Income tax payable

$$ 0 - $ 8375$ $10 %$ of the amount over $$ 0$

$$ 8375 - $ 34000$ $$ 837.50 + 15 %$ of the amount over $$ 8375$

$$ 34000 - $ 82400$ $$ 4681.25 + 25 %$ of the amount over $$ 34000$

$$ 82400 - $ 171850$ $$ 16781.25 + 28 %$ of the amount over $$ 82400$

$$ 171850 - $ 373650$ $$ 41827.25 + 33 %$ of the amount over $$ 171850$

$$ 373650 +$ $$ 108421.25 + 35 %$ of the amount over $$ 373650$

Cecelia earned a taxable income of $$ 30000$ .

The income is in row two because it is between $$ 8375 - $ 34000$ .

So, he has to pay $$ 8375$ of the amount over $$ 8375$ . Thus, we get

$$ (30000 - 8375) = $ 21625$

So, $15 %$ of $$ 21625$ is $$ (\frac{15}{100} \times 21625) = $ 3243.75$

Total payable yearly tax is $$ (3243.75 + 837.50) = $ 4081.25$

Cecelia paid $$ 320.25$ tax per year, so at the end of the year she will pay $$ (320.25 \times 12) = $ 3843$

Therefore, Cecelia has to pay the aamount of additional tax $= $ (4081.25 - 3843) = 238.25$

Principal amount ( $$$ )	Interest rate ( $%$ )	Time invested
$500$	$1$	$3$ years

Principal amount ( $$$ )	Interest rate ( $%$ )	Time invested
$650$	$0.75$	$2 \frac{1}{2}$ years

Principal amount ( $$$ )	Interest rate ( $%$ )	Time invested
$1000$	$1.25$	$5$ years

Principal amount ( $$$ )	Interest rate ( $%$ )	Time invested
$1200$	$4$	$6 \frac{3}{4}$ years

Principal amount ( $$$ )	Interest rate ( $%$ )	Time invested
$875$	$5.5$	$3$ years

Important Questions on Managing Money

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