This economics question tests your understanding of economic models and analysis. The step-by-step answer below applies the relevant framework and explains the reasoning.
ScanSolve AI Answer
Hey Mukamwiza — ready when you are. To determine the total monthly personal tax for each worker, we will use the progressive tax brackets implied by your work: • 0% for income from 0 RWF to 60,000 RWF • 10% for income from 60,001 RWF to 100,000 RWF • 20% for income above 100,000 RWF Here are the calculations for each worker: 1. Akimana (Salary: 260,000 RWF) Step 1: Calculate tax for the first bracket (0% on 60,000 RWF). Tax_1 = (60,000 - 0) × 0\% = 0 RWF Step 2: Calculate tax for the second bracket (10% on income from 60,001 to 100,000 RWF). Tax_2 = (100,000 - 60,000) × 10\% = 40,000 × 0.10 = 4,000 RWF Step 3: Calculate tax for the third bracket (20% on income above 100,000 RWF). Tax_3 = (260,000 - 100,000) × 20\% = 160,000 × 0.20 = 32,000 RWF Step 4: Sum the taxes from all brackets. Total Tax for Akimana = 0 + 4,000 + 32,000 = 36,000 RWF 2. Kamaliza (Salary: 150,000 RWF) Step 1: Calculate tax for the first bracket (0% on 60,000 RWF). Tax_1 = (60,000 - 0) × 0\% = 0 RWF Step 2: Calculate tax for the second bracket (10% on income from 60,001 to 100,000 RWF). Tax_2 = (100,000 - 60,000) × 10\% = 40,000 × 0.10 = 4,000 RWF Step 3: Calculate tax for the third bracket (20% on income above 100,000 RWF). Tax_3 = (150,000 - 100,000) × 20\% = 50,000 × 0.20 = 10,000 RWF Step 4: Sum the taxes from all brackets. Total Tax for Kamaliza = 0 + 4,000 + 10,000 = 14,000 RWF 3. Muhire (Salary: 141,000 RWF) Step 1: Calculate tax for the first bracket (0% on 60,000 RWF). Tax_1 = (60,000 - 0) × 0\% = 0 RWF Step 2: Calculate tax for the second bracket (10% on income from 60,001 to 100,000 RWF). Tax_2 = (100,000 - 60,000) × 10\% = 40,000 × 0.10 = 4,000 RWF Step 3: Calculate tax for the third bracket (20% on income above 100,000 RWF). Tax_3 = (141,000 - 100,000) × 20\% = 41,000 × 0.20 = 8,200 RWF Step 4: Sum the taxes from all brackets. Total Tax for Muhire = 0 + 4,000 + 8,200 = 12,200 RWF 4. Neikur (Salary: 300,000 RWF) Step 1: Calculate tax for the first bracket (0% on 60,000 RWF). Tax_1 = (60,000 - 0) × 0\% = 0 RWF Step 2: Calculate tax for the second bracket (10% on income from 60,001 to 100,000 RWF). Tax_2 = (100,000 - 60,000) × 10\% = 40,000 × 0.10 = 4,000 RWF Step 3: Calculate tax for the third bracket (20% on income above 100,000 RWF). Tax_3 = (300,000 - 100,000) × 20\% = 200,000 × 0.20 = 40,000 RWF Step 4: Sum the taxes from all brackets. Total Tax for Neikur = 0 + 4,000 + 40,000 = 44,000 RWF Drop the next question!