Number 9
4 marks · HardMaria earns $92,000 per year in Kalculus, where income tax is paid at 20% on the first $50,000 and 40% on any amount above $50,000.
Calculate:
How much income tax does Maria pay in a year?
How much does she receive per month after tax is deducted? Give your answer to the nearest dollar.
Work this out on paper, then compare with the answer and worked solution below. With a free account you can submit written answers for marking.
Show answer
(a) $22,800 USD
(b) $5,765 USD
Common mistakes: Applying 40% to whole salary; Forgetting tax is on amount above $50,000 only; Dividing yearly income incorrectly
Show mark scheme and worked solution
Marking points
M1 (a) · 1 mark · Works out 20% of 50000 and 40% of the remainder.
M2 (a) · 1 mark · Adds both tax components for total tax.
A1 (a) · 1 mark · Gives correct total tax: $22,800. (follow-through)
A2 (b) · 1 mark · Finds correct monthly 'after tax' amount, $5,765 (accept 5765 or $5,765, to nearest dollar). (follow-through)
Worked solution
a) Tax on first $50,000 at 20%:
Tax on remainder ($92,000 - $50,000 = $42,000) at 40%:
Total income tax:
b) Maria's annual income after tax:
Monthly after-tax income:
So, she receives $5,765 per month after tax (to nearest dollar).