1.

The earnings for a civil servant in January 2010 were as follows;

Monthly income (Shs) Rate %

1st 10,164 10
Next 9,576 15
Next 9,576 20
Next 9,576 25
Over 38,892 30

i. Monthly relief was Shs.1, 162. Other deductions amounted to Shs. 6,200.
Determine the net pay for the month

25,000

8,000

2,400

1,800

37,200 Gross Pay

ii. 10,164 * 10/100 = 1,016.4

9,576 * 15/100 = 1,436.4

9,576 * 20/100 = 1,915.2

9,576 * 25/100 = 2,394

8,472 * 25/100 = 2,118

8,880.00 Total Tax

iii. Total Tax – Relief

8,880.00
 (1,162.00)
Net Tax
7,718.00 Payable

iv.

7,718.00
+
6,200.00
Total
13,918.00 Deductions

Gross pay – Total deduction

37,200.00

(13,918.00)

23,282.00 Net Pay

2. Radios Kshs. 1,250 each

Retailer bought 100 radios
Trade discount 10%
Cash discount 5%
1,250 * 100 = Kshs. 12,500

125,000 * 10/100 = Kshs. 12,500 Trade discount

12,500 * 5/100 = Kshs. 625 Cash discount

Amount paid by retailer

12,500 – 625 = Kshs. 11,875.
3. Salary + commission = total earnings
10% = 6,000 – 4,000
100%?

(100 * 2000)/10 = Kshs. 20,000

Sales = Kshs. 20,000

4. Swiss franc total amount = 7,000

After conversion total money in Kshs. = 7,000 * 64 = Kshs. 448,000
Other expenses = Kshs. 120,000
Accommodation = (Kshs. 5,000 * 30) = Kshs. 150,000
Total costs in Kshs. 150,000 + 120,000 = Kshs. 270,000
Money left to be converted = Kshs. 448,000
Amount ready to be converted back to kroners = Kshs. 448,000 - Kshs. 270,000 =
Kshs. 178,000
Therefore kroners = Kshs. 178,000/ Kshs. 11 = 16,181
Kroners 16,181

5. I =(P.R.T)/100
100. I = P.R.T
T = 100. I/P.R
Time = (16,800 * 100)/ (14 * 80,000)
1,680,000/1,120,000 = 1.5 years