Answered

Jason pays [tex]7 \frac{1}{2} \%[/tex] of his salary in tax. His deductions are K20 for insurance, K50 for savings and loans, and K50 for superannuation savings. If his salary per fortnight is K1,329.40, what amount would be his net pay?

A. K1,118.69
B. K1,109.69



Answer :

GinnyAnswer
To find Jason's net pay, we need to follow these steps:

1. Identify the given values:
- Salary per fortnight: K1,329.40
- Tax rate: [tex]\( 7 \frac{1}{2} \% = \frac{7.5}{100} = 0.075 \)[/tex]
- Insurance deduction: K20
- Savings and loans deduction: K50
- Superannuation savings deduction: K50

2. Calculate the tax amount:
[tex]\[ \text{Tax} = 0.075 \times 1329.40 = 99.705 \][/tex]

3. Calculate total deductions:
[tex]\[ \text{Total deductions} = \text{Tax} + \text{Insurance} + \text{Savings and loans} + \text{Superannuation savings} \][/tex]
[tex]\[ \text{Total deductions} = 99.705 + 20 + 50 + 50 = 219.705 \][/tex]

4. Calculate the net pay:
[tex]\[ \text{Net pay} = \text{Salary} - \text{Total deductions} \][/tex]
[tex]\[ \text{Net pay} = 1329.40 - 219.705 = 1109.695 \][/tex]

So, Jason's net pay per fortnight would be K1,109.69.

The correct option is:
B. K1,109.69