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Calculate Mr. Gatua's PAYE (Pay As You Earn) given his salary of Sh. 80,000 and the tax brackets and reliefs provided.

Accounting

ScanSolve AI Answer

Step-by-step solution

11 steps
  1. Calculate the tax for each income bracket.

    Mr. Gatua's annual salary is Sh. 80,000. This is his taxable income.

    • First bracket (Sh. 1 - 1500): Taxable amount = Sh. 1500 Tax = 1500×10%=Sh. 1501500 \times 10\% = \text{Sh. } 150

    • Second bracket (Sh. 1501 - 3000): Taxable amount = 3000−1500=Sh. 15003000 - 1500 = \text{Sh. } 1500 Tax = 1500×15%=Sh. 2251500 \times 15\% = \text{Sh. } 225

    • Third bracket (Sh. 3001 - 4500): Taxable amount = 4500−3000=Sh. 15004500 - 3000 = \text{Sh. } 1500 Tax = 1500×25%=Sh. 3751500 \times 25\% = \text{Sh. } 375

    • Fourth bracket (Above Sh. 4500): Taxable amount = 80,000−4500=Sh. 75,50080,000 - 4500 = \text{Sh. } 75,500 Tax = 75,500×35%=Sh. 26,42575,500 \times 35\% = \text{Sh. } 26,425

  2. Calculate the total annual gross tax.

    Total Gross Tax = 150+225+375+26,425=Sh. 27,175150 + 225 + 375 + 26,425 = \text{Sh. } 27,175

  3. Calculate the total annual personal relief.

    Monthly personal relief = Sh. 1056
    Annual personal relief = 1056×12=Sh. 12,6721056 \times 12 = \text{Sh. } 12,672

  4. Calculate the PAYE (Pay As You Earn).

    PAYE = Total Gross Tax - Annual Personal Relief
    PAYE = 27,175−12,672=Sh. 14,50327,175 - 12,672 = \text{Sh. } 14,503

    Mr. Gatua's PAYE is Sh. 14,503\boxed{\text{Sh. } 14,503}.

  5. Write down the given terms using the formula for the nn-th term of a geometric series, Tn=arn−1T_n = ar^{n-1}.

    The third term (T3T_3) is 313=1033 \frac{1}{3} = \frac{10}{3}.

    T3=ar3−1=ar2=103(Equation 1)T_3 = ar^{3-1} = ar^2 = \frac{10}{3} \quad \text{(Equation 1)}

    The sixth term (T6T_6) is 1114=45411 \frac{1}{4} = \frac{45}{4}.

    T6=ar6−1=ar5=454(Equation 2)T_6 = ar^{6-1} = ar^5 = \frac{45}{4} \quad \text{(Equation 2)}
  6. Calculate the common ratio (rr) by dividing Equation 2 by Equation 1.

    ar5ar2=454103\frac{ar^5}{ar^2} = \frac{\frac{45}{4}}{\frac{10}{3}} r3=454×310r^3 = \frac{45}{4} \times \frac{3}{10} r3=13540r^3 = \frac{135}{40}

    Simplify the fraction:

    r3=278r^3 = \frac{27}{8}

    Take the cube root of both sides:

    r=2783r = \sqrt[3]{\frac{27}{8}} r=32r = \frac{3}{2}
  7. Calculate the first term (aa) by substituting the value of rr into Equation 1.

    ar2=103ar^2 = \frac{10}{3} a(32)2=103a \left(\frac{3}{2}\right)^2 = \frac{10}{3} a×94=103a \times \frac{9}{4} = \frac{10}{3} a=103×49a = \frac{10}{3} \times \frac{4}{9} a=4027a = \frac{40}{27}

    The common ratio is 32\boxed{\frac{3}{2}} and the first term is 4027\boxed{\frac{40}{27}}.

  8. Identify the given information and the relevant formula.

    Given triangle RSQ:
    Angle RSQ (angle S) = 50∘50^\circ
    Side SQ = 11.83 cm
    Side QR = 12 cm
    We need to find the radius (RR) of the circumcircle.
    The sine rule states that for a triangle with sides a,b,ca, b, c and opposite angles A,B,CA, B, C, the radius of the circumcircle RR is given by:

    asin⁡A=bsin⁡B=csin⁡C=2R\frac{a}{\sin A} = \frac{b}{\sin B} = \frac{c}{\sin C} = 2R

    In this case, we have side QR (opposite angle S) and angle S.
    So, a=QR=12 cma = QR = 12 \text{ cm} and A=angle RSQ=50∘A = \text{angle RSQ} = 50^\circ.

  9. Apply the sine rule to find $2R$.

    QRsin⁡(angle RSQ)=2R\frac{QR}{\sin(\text{angle RSQ})} = 2R 12sin⁡(50∘)=2R\frac{12}{\sin(50^\circ)} = 2R
  10. Calculate the value of sin⁡(50∘)\sin(50^\circ).

    sin⁡(50∘)≈0.76604\sin(50^\circ) \approx 0.76604
  11. Substitute the value and solve for RR.

    120.76604=2R\frac{12}{0.76604} = 2R 15.6649≈2R15.6649 \approx 2R R≈15.66492R \approx \frac{15.6649}{2} R≈7.83245R \approx 7.83245

    Rounding to two decimal places:

    R≈7.83 cmR \approx 7.83 \text{ cm}

    The radius of the circle is 7.83 cm\boxed{7.83 \text{ cm}}.

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