A man's annual income is N3000, if the first N500 is tax free and on the remaining amount tax is paid at the rate of 5 kobo per naira, find the total tax paid by the man.
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Taxable income = N3000 - N500 = N2500
Tax rate = 5 kobo per naira
Total tax paid = Taxable income x Tax rate
Total tax paid = N2500 x 0.05
Total tax paid = N125