Martha earns a gross salary of N$ 40,000 per month. The following deductions come off her
gross salary: income tax 28%, pension fund 10%, medical aid fund 5%.
a) How much (in N$) does Martha pay in income tax?
b) How much (in N$) does Martha contribute to her pension fund?
c) How much (in N$) does Martha contribute to her medical aid fund?
d) Determine Martha’s net salary (gross salary after deductions).
Martha ‘s expenses include: ⅓ of her net salary for housing and a ¼ of her net salary for
her vehicle.
e) How much (in N$) does Martha pay for her housing?
f) How much (in N$) does Martha pay for her vehicle?
g) What is Martha’s disposable income (income after deductions and expenses) in N$?
a)134400
b)48000
c)24000
d)263600
e)7600
f)5700
g)114000
To solve this problem, let's break it down step by step:
a) To calculate how much Martha pays in income tax, we need to find 28% of her gross salary. We can calculate this by multiplying her gross salary by 0.28.
Income Tax = Gross Salary * 0.28
b) To calculate how much Martha contributes to her pension fund, we need to find 10% of her gross salary. We can calculate this by multiplying her gross salary by 0.10.
Pension Fund Contribution = Gross Salary * 0.10
c) To calculate how much Martha contributes to her medical aid fund, we need to find 5% of her gross salary. We can calculate this by multiplying her gross salary by 0.05.
Medical Aid Contribution = Gross Salary * 0.05
d) To determine Martha's net salary, we need to subtract the total deductions (income tax, pension fund contribution, and medical aid contribution) from her gross salary.
Net Salary = Gross Salary - (Income Tax + Pension Fund Contribution + Medical Aid Contribution)
e) To calculate how much Martha pays for housing, we need to find 1/3 of her net salary. We can calculate this by multiplying her net salary by 1/3.
Housing Expense = Net Salary * (1/3)
f) To calculate how much Martha pays for her vehicle, we need to find 1/4 of her net salary. We can calculate this by multiplying her net salary by 1/4.
Vehicle Expense = Net Salary * (1/4)
g) To determine Martha's disposable income, we need to subtract the total expenses (housing expense and vehicle expense) from her net salary.
Disposable Income = Net Salary - (Housing Expense + Vehicle Expense)
Now, you can substitute the given values (Martha's gross salary) into the formulas to find the answers to each question.