MEDIUM
Upper Secondary: IGCSE
IMPORTANT
Earn 100

Use the tax table below to workout the annual tax payable and the monthly tax deductions for $135000 taxable income.

Tax able income (in $) Rates of Tax
0-132000 18% of each $1
132001-210000 $23760+25% of the amount above $132000
210001-290000 $43260+30% of the amount above $210000
290001-410000 $67260+35% of the amount above $290000
410001-525000 $109260+38% of the amount above $410000
525001 and above $152960+40% of the amount above $525000

Important Questions on Managing Money

MEDIUM
Upper Secondary: IGCSE
IMPORTANT

Use the tax table below to workout the annual tax payable and the monthly tax deductions for $178000 taxable income.

Tax able income (in $) Rates of Tax
0-132000 18% of each $1
132001-210000 $23760+25% of the amount above $132000
210001-290000 $43260+30% of the amount above $210000
290001-410000 $67260+35% of the amount above $290000
410001-525000 $109260+38% of the amount above $410000
525001 and above $152960+40% of the amount above $525000
EASY
Upper Secondary: IGCSE
IMPORTANT

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

 

Li-Gon has a taxable income of $40000 for this tax year. He tells his friends that he is in the 25% tax bracket. Is this correct?

MEDIUM
Upper Secondary: IGCSE
IMPORTANT

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

 

Li-Gon has a taxable income of $40000 for this tax year. He tells his friends that he is in the 25% tax bracket. Does it mean that he pays $10000 in income tax? Explain why or why not.

MEDIUM
Upper Secondary: IGCSE
IMPORTANT

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

 

Li-Gon has a taxable income of $40000 for this tax year. He tells his friends that he is in the 25% tax bracket. When Li-Gon checks his tax return, he finds that he only has to pay $6181.25 income tax. Show how this amount is calculated by the revenue services.

MEDIUM
Upper Secondary: IGCSE
IMPORTANT

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

How much tax would a person earning $250000 pay in this tax year?

MEDIUM
Upper Secondary: IGCSE
IMPORTANT

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. Will Cecelia have to pay additional tax at the end of the tax year or will she be due for a tax refund as a result of overpaying?

MEDIUM
Upper Secondary: IGCSE
IMPORTANT

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?

EASY
Upper Secondary: IGCSE
IMPORTANT

For the following saving amount, calculate the simple interest earned. Give your answer in $.

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