More about Percentages

Chapter 2.0 Let’s Review

Attempt ALL questions. The full marks of this test are 23.

1. If 70 is increased to 91, find the percentage increase. (2 marks)

2. Yesterday, the stock price of a company was $1.2. It is increased to $3.6

today. Find the percentage increase in the stock price. (2 marks)

3. If 55 is decreased to 33, find the percentage decrease. (2 marks)

4. Last month, 36 people died in traffic accidents. If no people died in traffic

accidents this month, find the percentage decrease in the number of deaths. (2 marks)

5. If 120 is increased by 40%, find the new value. (2 marks)

6. If 2580 is decreased by 15%, find the new value. (2 marks)

7. Yesterday, Mary spent $20 for snacks. Today, she spends $25 for snacks.
Find the percentage change in the amount that Mary spent. (2 marks)

8. A football team scored 75 points and 100 points in the years of 2008 and 2009
respectively. Find the percentage change in the scores. (2 marks)

9. Given that the original value of a is 18. If the new value of a is obtained by
first dividing the original value by 3 and then adding 3 to the quotient, find
the percentage change in the value of a. (3 marks)

10. On 1 January, Amy weighed 60 kg. In the first half of the year, her weight
decreased by 15%. In the second half of the year, her weight increased by
10%. Find the overall percentage change in her weight in the whole year. (4 marks)

END OF TEST

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 More about Percentages

Chapter 2.1 Simple Interest

Attempt ALL questions. The full marks of this test are 71.

Level 1

1. Suppose $28 000 is deposited in a bank at an interest rate of 4% p.a. for 2

years. Find the simple interest and the amount. (3 marks)

2. Suppose $84 000 is deposited in a bank at an interest rate of R% p.a. for 4.5
years. If the amount is $95 340, find
(a) the simple interest, and (b) the value of R. (3 marks)

3. Suppose $P is deposited in a bank at an interest rate of 0.6% p.a. for a year. If

the amount is $143 858, find
(a) the value of P, and (b) the simple interest. (3 marks)

4. Suppose $P is deposited in a bank at an interest rate of 2.5% p.a. for T years.

If the amount is $60 736 and the simple interest is $2336, find the values of P
and T. (3 marks)

5. Tom borrowed $3400 from a bank at an interest rate of 12.5% p.a. Find the
simple interest and the amount he has to repay after 4 years. (3 marks)

6. Patrick borrowed some money from a bank for 2 years at an interest rate of
3% p.a. If he has to pay a simple interest of $1260 after 2 years, find
(a) the principal, and
(b) the amount he has to repay. (3 marks)

7. Mr. Lee deposited $125 000 in a bank. After 1 year and 3 months, he received
an amount of $134 375. Find the simple interest and the corresponding annual
interest rate. (3 marks)

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8. Mary deposited $48 000 in a bank. Given that she received a simple interest
of $2304 after 18 months.
(a) Find the annual interest rate.
(b) Find the amount if the principal of $48 000 is deposited for 1 year only. (4 marks)

9. Suppose $50 000 is deposited in a bank at an interest rate of 4.2% p.a.

(a) How long does it take to receive a simple interest of $2520?
(b) Find the amount after 3 years. (4 marks)

1
10. Mark borrowed $7800 from a bank at an interest rate of 2 % p.a. Find the
2
simple interest and the amount after 1 year and 2 months. (3 marks)

11. Jack borrowed some money from a bank at an interest rate of 12.6% p.a. If he
has to repay an amount of $36 465 after 10 months,
(a) how much did he borrow from the bank?
(b) how much simple interest did he have to repay? (3 marks)

12. Mr. Wong deposited $23 000 in a bank at an interest rate of 3.6% p.a.
(a) How long does it take to receive an amount of $25 484?
(b) Find the interest if $23 000 is deposited for 8 years. (4 marks)

Level 2

13. Alex deposited $20 000 in a bank at 3% p.a. for 1 year and $30 000 in another
bank at 2.5% p.a. for 2 years. Find the total simple interest he earned. (4 marks)

14. Ben deposited $16 000 in a bank for 5 years. If the simple interest rate for the
first 2 years is 3.5% p.a. and that for the remaining period is 4.5% p.a., find
the amount he can get after 5 years. (4 marks)

15. David deposited $35 000 in a bank. The simple rate is 6% p.a.
(a) Find the amount he can get after 10 months.
(b) How long does it take for him to receive a simple interest of $2625? (4 marks)

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16. Jessica deposited $6000 in bank A at 4% p.a. for 1 year and 6 months. She
also deposited $9000 in bank B for 1 year and 3 months. If the simple
interests earned from bank A and bank B are the same, what is the annual
interest rate in bank B? (4 marks)

17. Matthew deposited $11 000 in bank A at 7% p.a. for 2 years. Peter deposited
some money in bank B at 5% p.a. for 2 years and 9 months. If the simple
interests earned by Matthew and Peter are the same, how much did Peter
deposit in bank B? (4 marks)

18. Christy deposited $8000 in bank A at 4% p.a. for 1 year and 3 months. After
that, she withdrew the amount and then deposited it in bank B at 5% p.a. for 1
year and 9 months. Find the total amount Christy can get. (4 marks)

19. Calvin borrowed some money from a bank and decided to repay the loan after
3 years. If the simple interest rate increases from 3.5% p.a. to 5.75% p.a., he
has to repay $5400 more. How much did he borrow from the bank? (4 marks)

20. Mr. Tung deposited some money in bank A at 6% p.a. for 3 years. After that,
he withdrew the amount and then deposited it in bank B at 5% p.a. for 4 years.
If the total amount Mr. Tung received from bank B was $191 160, find the
principal. (4 marks)

END OF TEST

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 More about Percentages

Chapter 2.2 Compound Interest

Attempt ALL questions. The full marks of this test are 97.

Level 1

1. Suppose $500 is deposited in a bank at an interest rate of 4% p.a. for 2 years.

Find the amount and the compound interest if the interest is compounded
yearly. (3 marks)

2. Sandy deposited $P in a bank at an interest rate of 5% p.a. The interest is

compounded yearly. If she received an amount of $2315.25 after 2 years, find
(a) the value of P, and (b) the compound interest. (3 marks)

3. Suppose $60 000 is deposited in a bank at an interest rate of 4% p.a. for

3 years. Find the amount and the compound interest if the interest is
compounded half-yearly. (Give the answers correct to the nearest dollar.) (4 marks)

4. Kate borrowed $P from a bank at an interest rate of 20% p.a. The interest is
compounded quarterly. If she has to repay $29 172.15 after 6 months, find
(a) the value of P, and (b) the compound interest. (4 marks)

5. Suppose $2000 is deposited in a bank at an interest rate of 6% p.a. for

9 months. Find the amount and the compound interest if the interest is
compounded monthly. (Give the answer correct to 2 decimal places.) (4 marks)

6. Mandy borrowed $P from a bank at an interest rate of 12% p.a. The interest is
compounded monthly. She has to repay $1 051 010.05 after 5 months.
(a) Find the value of P.
(b) Find the compound interest she has to repay. (4 marks)

7. Albert deposited $12 000 in a bank at an interest rate of 7.2% p.a. for 3 years.
Find the amount and the compound interest if it is compounded half-yearly.
(Give the answers correct to 2 decimal places.) (4 marks)

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8. Ken borrowed $800 000 from a bank at an interest rate of 6% p.a. The interest
was compounded quarterly.
(a) Find the amount he has to repay after 15 months.
(b) Find the compound interest he has to repay after 15 months.
(Give the answers correct to 2 decimal places.) (4 marks)

9. Amy deposited some money at an interest rate of 5% p.a. The interest rate
was compounded quarterly. If she received an amount of $55 928 after 3.5
years, find
(a) the principal, and (b) the compound interest.
(Give the answers correct to the nearest dollar.) (4 marks)

10. Bob borrowed some money from a bank at an interest rate of 7% p.a. The
interest was compounded half-yearly. If he had to repay $33 255 after 2.5
years, find the principal he borrowed and the corresponding compound
interest he has to repay. (Give the answers correct to the nearest dollar.) (4 marks)

Level 2

11. Ben deposited $45 000 in a bank. The interest rate is compounded quarterly.
The amount would become $46 800 after 3 months.
(a) Find the annual interest rate.
(b) Find the compound interest after 18 months, correct to 2 decimal places. (6 marks)

12. Patrick deposited $20 000 in a bank at an interest rate of 5.2% p.a. for 1 year.
(a) Find the simple interest.
(b) Suppose the interest is compounded weekly. Find the compound interest,
correct to the nearest dollar. (Take 1 year  52 weeks.) (6 marks)

13. Tom borrowed some money from bank A at an interest rate of 7.2% p.a. The
interest was compounded daily. He has to repay $16 710.5 after 1.5 years.
(a) How much did Tom borrowed from bank A? (Take 1 year  360 days.)
(b) In bank B, the interest rate is 7.5% p.a. The interest is compounded
monthly. If Tom also borrows the same amount of money from bank B,
how much will Tom need to repay after 1.5 years?
(Give the answers correct to the nearest dollar.) (6 marks)

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14. Kelly had a sum of $14 000. She deposited $4000 in bank A at a simple
interest rate of 6% p.a. She deposited the rest in bank B at an interest rate of
5.5% p.a., compounded half-yearly.
(a) Find the total amount Kelly obtained from 2 banks after 2.5 years, correct
to 2 decimal places.
(b) If Kelly deposited $14 000 in bank A only, Find the amount after 2.5
years. Is the amount more than that of (a)? (6 marks)

15. Suppose the interest is compounded monthly in a bank.

(a) Find the compound interest if $3800 is deposited for 7 months at an
interest rate of 1.2% p.a., i.e., 0.1% per month.
(b) Find the difference between the compound interests if $3800 is deposited
for 7 months at interest rates of 7.2% p.a. and 6% p.a. respectively. Is the
result the same as (a)?
(Give the answers correct to 2 decimal places.) (6 marks)

16. Janice decided to deposit some money into a bank at an annual interest rate of
8%. The interest is compounded quarterly. Given that the difference between
the compound interest and the simple interest after 18 months is $110. Find
the principal and the simple interest. (Give the answers correct to the nearest
dollar.) (6 marks)

17. Christy deposited $20 000 in bank A. After 2 years, she obtained a simple
interest of $1500. She withdrew the amount and then deposited it in bank B
for 3 years, where the interest rate was the same as that of bank A. Given that
the interest is compounded quarterly in bank B. Find the interest she earned in
these 5 years correct to 2 decimal places. (6 marks)

18. (a) A deposit will double itself at a simple interest rate of R% p.a. in 12.5
years. Find the value of R.
(b) Someone claims that if the interest is compounded half-yearly at R% p.a.,
then the deposit will be more than double after 9 years. Do you agree?
Explain your answer briefly. (6 marks)

28
19. Suppose $x is deposited in a bank at an interest rate of 6% p.a. for 2 years.
The interest is compounded quarterly in the first year and compounded
monthly in the second year.
(a) Find the percentage increase in the principal, correct to 2 decimal places.
(b) Someone claims that the percentage increase in the principal would be
greater than (a) if the interest is compounded monthly in the first year
and compounded quarterly in the second year. Do you agree? Explain
your answer briefly. (6 marks)

20. Sam deposited $15 000 in a bank at an interest rate of 4.8% p.a. on 1 April.
The interest is compounded monthly.
(a) Find the amount he can get on 1 May.
(b) If Sam deposits $2000 on 1 May and $3000 on 1 June, find the total
amount he can get on 1 July, correct to the nearest dollar. (5 marks)

END OF TEST

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 More about Percentages

Chapter 2.3 Growth and Depreciation

Attempt ALL questions. The full marks of this test are 104.

Level 1

1. Given that the original value is 670. If the increase rate is 9% per week, find
the growth factor and the new value 4 weeks later, correct to 3 significant
figures. (3 marks)

2. Given that the original value is 590. If the decrease rate is 7% per month, find
the decay factor and the new value 4 months later, correct to 3 significant
figures. (3 marks)

3. Given that the original value is 700 mL. If the increase rate is 15% per minute,
find the growth factor and the new value 8 minutes later, correct to 3
significant figures. (3 marks)

4. Given that the original value is 1600 g. If the decrease rate is 12% per day,
find the decay factor and the new value 5 days later, correct to 3 significant
figures. (3 marks)

5. Given that the new value is $90 100. If the increase rate was 3.75% per year,
find the growth factor and the original value 16 years ago, correct to 3
significant figures. (3 marks)

6. Given that the new value is 26 400 km. If the decrease rate was 2% per year,
find the decay factor and the original value 9 years ago, correct to 3
significant figures. (3 marks)

7. Given that the new value is 938 cm3. If the increase rate was 150% per hour,
find the growth factor and the original value 3 hours ago, correct to 3
significant figures. (3 marks)

30
8. Given that the new value is 1080 m2. If the decrease rate was 16% per second,
find the decay factor and the original value 16 seconds ago, correct to 3
significant figures. (3 marks)

9. The present value of a piece of antique furniture is $34 500. If its value
increases by 23% each year, find the growth factor and the value of the
antique after 5 years, correct to the nearest dollar. (3 marks)

10. The value of a car is $158 000 now. If its value decreases by 12% every year,
find the decay factor and the value of the car after 4 years, correct to the
nearest $100. (3 marks)

11. The value of a toy was $20 three years ago. If it increases by 10% each year,
find
(a) the present value, and
(b) the change in the value over the past 3 years.
(Give the answers correct to the nearest $0.1.) (3 marks)

12. The population of a city was 756 800 in 2002. If it decreases by 4% every
year, find
(a) the population of the city in 2009, and
(b) the change in the population of the city over the past 7 years.
(Give the answers correct to the nearest 100.) (3 marks)

13. The number of visitors that entered a theme park was 65 000 in 2008. If it
increases by 5% each year, find
(a) the number of visitors in 2016, and
(b) the increase in the number of visitors over the past 8 years.
(Give the answers correct to the nearest 100.) (3 marks)

14. 4.70  1010 m3 of water was consumed by a city 5 years ago. If the amount of
consumption decreases by 7% every year afterwards, find
(a) the present amount of consumption, and
(b) the decrease in the amount of consumption over the past 5 years.
(Give the answers correct to 3 significant figures.) (3 marks)

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15. The average temperature of a city is 32.4C this year and it increases by 1%
every year. Find the growth factor and the temperature of the city 5 years ago,
correct to the nearest C. (3 marks)

16. The number of employees of a company is 1250 now. If it decreases by 16%

each year, find the decay factor and the number of employees of the company
2 years ago, correct to the nearest integer. (3 marks)

17. The profit of a restaurant increased by 6% every month. The profit of the
restaurant is $56 000 this month.
(a) What was the profit 6 months ago?
(b) Find the change in the profit over the past 6 months.
(Give the answers correct to 3 significant figures.) (3 marks)

18. The average score of a basketball player decreases by 6.5% every year. His
average score is 16.3 points this year.
(a) What was his average score 4 years ago?
(b) Find the change in the average score over the past 4 years.
(Give the answers correct to 1 decimal place.) (3 marks)

19. There are 1082 bacteria in a dish now. If the number of bacteria increases
steadily at a constant rate of 3% every minute,
(a) how many bacteria were there 7 minutes ago?
(b) find the increase in the number of bacteria over the past 7 minutes.
(Give the answers correct to the nearest integer.) (3 marks)

20. Tom bought a computer a year ago. The value of the computer has
depreciated by 14% every month. If the present value of the computer is
$1120,
(a) what was the value of the computer a year ago?
(b) find the decrease in the value of the computer over the last 12 months.
(Give the answers correct to the nearest dollar.) (3 marks)

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Level 2

21. The selling price of petroleum increases by 1.5% every 3 months. It was
$13.9 per litre in June 2006.
(a) Find the selling price of 1 litre of petroleum in June 2009.
(b) Find the percentage change in the selling price of petroleum from June
2006 to June 2009.
(Give the answers correct to 3 significant figures.) (4 marks)

22. A factory produces 500 000 units of toys this month. The production line is
aging such that the number of toys produced in a month decreases by 5%
every quarter.
(a) Find the number of toys produced in a month 2 years later.
(b) Find percentage change in the number of toys produced over the next 2
years.
(Give the answers correct to 3 significant figures.) (4 marks)

23. There are 3200 sheep in a farm now. The number of sheep increases by 4%
every 6 months.
(a) Find the change in the number of sheep over the past 4 years.
(b) If 1000 sheep are sold 3 years later, find the difference between the
numbers of sheep 3 years later and 4 years ago.
(Give the answers correct to the nearest integer.) (6 marks)

24. Ben joined a training programme to increase his running speed. After training
for 8 months, he can run 200 m in 27.85 s. Given that the time spent by Ben to
run 200 m decreases by 2% every 4 months.
(a) Find the time spent by Ben to run 200 m before joining the programme.
(b) The training programme lasts for 2 years. Find the percentage decrease in
the time spent by Ben to run 200 m after training for 2 years.
(Give the answers correct to 3 significant figures.) (6 marks)

25. A tree was planted in 2001 and it was 1.6 m tall. In the first 3 years, the height
of a tree increased by 15% each year. After that, the height of the tree
increased by 8% every year. Find the height of the tree in 2004 and 2008
respectively, correct to 2 decimal places. (4 marks)

33
26. The value of a car was $88 000 in 2003. Its value decreased by 18% in 2004.
After that, its value decreased by 15% every year.
(a) Find the value of the car in 2009, correct to the nearest $10.
(b) Find the depreciation rate over the past 6 years, correct to 3 significant
figures. (6 marks)

27. In a city, the numbers of blood donations in 2005 and 2006 were 26 000 and
27 040 respectively.
(a) Find the growth factor of the number of blood donations from 2005 to
2006.
(b) If the number of blood donations increases by the same growth factor
each year, find the number of blood donations in 2010, correct to the
nearest integer. (4 marks)

28. The Consumer Price Index (CPI) of a city was 103.1 points in May and 102.3
points in August this year.
(a) Find the decay factor of the CPI from May to August this year, correct to
5 decimal places.
(b) If the CPI decreases by the same decay factor every 3 months, find the
CPI in November next year, correct to the nearest 0.1. (4 marks)

29. In July and August, the value of gold decreased by 11% in each month. In
September, the value of gold increased by 1%. In October, the value of gold
decreased by 7%. Find the depreciation rate of the value of gold over the last
4 months. (Give the answer correct to 3 significant figures.) (6 marks)

END OF TEST

34
 More about Percentages

Chapter 2.4 Successive and Component Changes

Attempt ALL questions. The full marks of this test are 115.

Level 1

1. Find the new value in each of the following cases.

(a) 4050 is first increased by 15% and then increased by 8%.
(b) 38 000 is first increased by 6% and then decreased by 11%. (4 marks)

2. Find the following unknown values.

(a) x first decreased by 7% and then increased by 5% to become 9765.
(b) y first decreased by 20% and then decreased by 35% to become 338. (4 marks)

3. (a) 12 345 is first decreased by 20% and then increased by 50%. Find the
new value.
(b) A number is first decreased by 20% and then increased by 50% to
become 12 345. Find the number. (4 marks)

4. Patrick bought a watch for $1200. He sold it to Jack at 20% profit. Then Jack
sold it to Alex at 15% loss.
(a) How much did Alex pay for the watch?
(b) Find the change in the value of the watch. (3 marks)

5. The price of some vegetables first increased by 80% and then decreased by
10% this week. If the price of these vegetables was $5 last week, find
(a) the latest price,
(b) the overall percentage change in the price of vegetables this week. (4 marks)

6. The stock price of a company was $17.5 on Tuesday. It decreased by 16% on

Wednesday, then increased by 20% on Thursday and further increased by
25% on Friday. Find the latest stock price and the overall percentage change
in the stock price over these 3 days. (4 marks)

35
7. Mandy’s weight increased by 5% 3 years ago, then increased by 8% 2 years
ago and finally decreased by 4% last year. If her weight was 52 kg this year,
find
(a) Mandy’s weight 3 years ago.
(b) the overall increase in Mandy’s weight.
(Give the answers correct to the nearest 0.1 kg) (3 marks)

8. Amy collects stamps every week. The number of new stamps she collected
decreased by 15% from 2 weeks ago to last week. Then it increased by 20%
from last week to this week. If Amy collected 306 new stamps this week, find
(a) the number of stamps that she collected 2 weeks ago,
(b) the total number of new stamps she collected over these 3 weeks. (4 marks)

9. During the prevalence of bird flu, the number of chickens in a farm decreased
by 28%. After that, the number of chickens increased by 25%. If the present
number of chickens is 3150, find
(a) the number of chickens in the farm before the prevalence of bird flu,
(b) the overall percentage change in the number of chickens in the farm. (4 marks)

10. Consider a triangle with base 15.0 cm and height 8.0 cm. If the base increased
by 6% and the height decreased by 5%, find the change in the area of the
triangle. (4 marks)

11. In a bookstore, 120 Magazine A and 160 Magazine B were sold last week.
The number of Magazine A sold decreased by 25% and the number of
Magazine B sold increased by 40% this week. Find the percentage change in
the total number of magazines sold during these two weeks, correct to 3
significant figures. (4 marks)

12. The entrance fee of a park was $250 for adults and $180 for children last year.
The fee has increased by 20% for adults and decreased 10% for children this
year. If a couple, who are adults, visit the park with 3 children, find
(a) the entrance fee that the family had to pay this year,
(b) the percentage change in the entrance fee that the family had to pay
during these 2 years, correct to 3 significant figures. (4 marks)

36
13. A coffee shop sold 650 cups of coffee at $22 each yesterday. Today, the price
of each cup of coffee has increased by 5% and the number of cups of coffee
sold has decreased by 20%. Find
(a) the income of the coffee shop today,
(b) the percentage change in the income of the coffee shop in these 2 days. (4 marks)

14. There were 38 000 students in a university last year. 45% of the students were
male. This year, the number of male students has increased by 20% and the
number of female students decreased by 10%. Find
(a) the present number of students in the university,
(b) the percentage change in the total number of students. (5 marks)

Level 2

15. A number is first increased by 23% and then decreased by 16%. Find the
percentage change of the number. (4 marks)

16. The length and the width of a rectangle increased by y% and decreased by
15% respectively. If the percentage change in the area of the rectangle is 0.3%,
find the value of y. (3 marks)

17. The side length of a square is decreased by 13%. Find the percentage decrease
in the area of the square. (4 marks)

18. A number is first decreased by x% and then increased by 12%. If the overall
percentage change of the number is 16%, find the value of x. (3 marks)

19. The price of a painting first increased by 25% and then decreased by 30%.
The new price is $325 less than the original price.
(a) Find the percentage decrease in the price of the painting.
(b) Hence find the new price of the painting. (6 marks)

20. The population of a city has decreased by 2.3% from 1990 to 2000 and then
increased by 3.7% from 2000 to 2010. The population in 2010 is 66 000 more
than that in 1990.
(a) Find the percentage increase in the population over these 20 years.
(b) Hence find the population in 2010, correct to the nearest 1000. (6 marks)

37
21. In a game, Jack’s score is 18% higher than Sandy’s score and Sandy’s score is
12% less than Kathy’s score. By what percentage is
(a) Jack’s score more than Kathy’s score?
(b) Kathy’s score less than Jack’s score?
(Give the answers correct to 3 significant figures if necessary.) (6 marks)

22. The cost of posting a gift to foreign countries consists of 2 parts: 70% for
transportation cost and 30% for insurance. If the transportation cost decreased
by 16% and the insurance increased by 5%, find
(a) the percentage change in the cost of posting a gift,
(b) the original cost of posting a gift if the new cost is $81.27. (7 marks)

23. The cost of manufacturing a car consists of 2 parts: 65% for raw materials and
35% for labour. If the cost of materials and labour increased by 24% and 8%
respectively, find
(a) the percentage increase in the total cost of manufacturing a car.
(b) the percentage of the new cost of raw materials to the new total cost.
(Give the answer correct to 3 significant figures.) (7 marks)

24. A merchant bought some goods and set the selling price higher than the cost
by 60%. He sold 70% of them in the first month and the rest at a discount of
x% in the second month. Given that the overall profit was 37.5%. Find
(a) the value of x.
(b) the overall profit percentage if the rest of the goods were sold at a
discount of 10%. (7 marks)

25. Last month, Ken’s expenditure equalled to two-thirds of his salary and he
saved the rest. Ken’s salary increases by $1500 this month. His expenditure
remains unchanged and equals to 60% of his salary.
(a) Find Ken’s salary last month.
(b) It is known that Ken’s salary will further increase next month and his
expenditure will remain unchanged. Given that his expenditure will
become 56.25% of his salary, find his salary next month. (7 marks)

END OF TEST

38
 More about Percentages

Chapter 2.5 Taxation

Attempt ALL questions. The full marks of this test are 120.

Level 1

1. Given that rates payable equals to 5% of the rateable value. If the rateable
value of a flat is $180 000, find the rates payable every year. (2 marks)

2. Given that rates payable equals to 5% of the rateable value. If the rateable
value of a flat is $306 000, find the rates payable every quarter. (2 marks)

3. Given that rates payable equals to 5% of the rateable value. Mr. Cheung owns
two flats with rateable values of $260 000 and $190 000. Find the total rates
payable every year. (3 marks)

4. Given that rates payable equals to 5% of the rateable value. Mr. Lee owns two
flats with rateable values of $274 000 and $216 000. Find the total rates
payable every quarter. (3 marks)

5. Given that the standard rate of property tax is 16%. Mr. Chan lets his flat to a
couple at a yearly rent of $153 600. Find the property tax that Mr. Chan has to
pay. (2 marks)

6. Given that the standard rate of property tax is 16%. Mr. Lam lets his office at
a quarterly rent of $460 000. Find the property tax that Mr. Lam has to pay. (2 marks)

7. Given that the standard rate of property tax is 16%. Ms. Fung owns a property.
She lets it to a family and gets a monthly rent of $11 800.
(a) Find the property tax Ms. Fung has to pay.
(b) What is her actual annual rental income after paying the property tax? (4 marks)

39
8. Given that the standard rate of property tax is 16%. Bob lets his property to a
couple and gets a monthly rent of $9300.
(a) Find the property tax Bob has to pay.
(b) What is his actual annual rental income after paying the property tax? (4 marks)

9. Given that the profit tax rates for corporations and unincorporated businesses
are 17.5% and 16% respectively. Find the profit tax payable if
(a) the net assessable profits of an unincorporated business was $1 500 000
last year.
(b) the gross profits and operating expenses of a corporation were $923 000
and $410 000 last year. (5 marks)

10. Given that the profit tax rates for corporations and unincorporated businesses
are 17.5% and 16% respectively. Find the profit tax payable if
(a) the gross profits and operating expenses of an unincorporated business
were $835 000 and $570 000 last year.
(b) the net assessable profits of a corporation was $1 200 000 last year. (5 marks)

11. The monthly gross profits and monthly operating expenses of a corporation
were $826 000 and $473 000 respectively. Find the profits tax paid by the
corporation last year. (Take profit tax rate for corporations  17.5%.) (3 marks)

12. The annual gross profits of a corporation was $870 000 last year. If the
operating expenses were 45% of the gross profits, find the profits tax paid by
the corporation last year. (Take profit tax rate for corporations  17.5%.) (3 marks)

13. Jack’s net chargeable income was $84 000 last year. According to the detailed
salaries tax rates shown below, how much salaries tax does he need to pay? (3 marks)

Net chargeable income Rate Tax ($)

On the first $30 000 2% 600
On the next $30 000 7% 2100
On the next $30 000 13% 3900
Remainder 19%

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14. Last year, Ken’s annual income was $208 000. He is single so that he can get
an allowance of $100 000. According to the detailed salaries tax rates shown
below, how much salaries tax does he need to pay? (4 marks)

Net chargeable income Rate Tax ($)

On the first $30 000 2% 600
On the next $30 000 7% 2100
On the next $30 000 13% 3900
Remainder 19%

15. Mr. Lee’s annual income was $250 000 and his wife’s annual income was
$138 000 last year. They have 2 children. Find their net chargeable income
according to the amounts of allowances shown below. (3 marks)

Allowances Amount ($)

Basic 100 000
Married person 200 000
Each child 40 000

16. Mr. Lau earned $17 200 each month and his wife is a housewife. They have a
son.
(a) According to the amounts of allowances shown below, find the total
allowance they can get.
(b) Do they need to pay salaries tax? (3 marks)

Allowances Amount ($)

Basic 100 000
Married person 200 000
Each child 40 000

Level 2

17. Ben owns a property. He has to pay $1150 for rates each quarter.
(a) Find the rateable value of his property. (Take tax rate  5%.)
(b) If he lets the property to a family at a monthly rent of $3800, find Ben’s
actual annual rental income after paying the property tax. (Take standard
rate  16%.) (5 marks)

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18. Given that the tax rate of rates is 5%.
(a) Derek owns a property. Last year, he paid $1350 for rates each quarter.
This year, he has to pay $1458 for rates each quarter. Find the increase in
the rateable value of his property.
(b) Mr. Tong owns 2 flats, A and B. He has to pay a total of $3080 for rates
each quarter. If the rateable value of flat A is 20% greater than that of flat
B, find the rateable value of flat B. (6 marks)

19. Last year, Tom paid $850 for rates on his flat each quarter. This year, the
rateable value of the property decreased by 6%. If the tax rate of rates is 5%,
(a) find the rateable value of his property this year.
(b) how much should he pay for rates each quarter this year? (5 marks)

20. Emily lets a property to Brian at a monthly rent of $y such that she has to pay
$9600 for property tax. Given that the standard rate of property tax is 16%.
(a) Find the value of y.
(b) It is known that the rateable value of Emily’s property is the same as the
annual rent. Find the rates payable every year. (Take tax rate  5%.)
(c) What is her actual annual rental income after paying the property tax and
the rates? (6 marks)

21. (a) Mr. Cheung owns an office and wants to let it out. The standard rate of
property tax is 16%. Find the monthly rent such that he can earn $62 000
each year after paying the property tax. (Give the answer correct to the
nearest dollar.)
(b) Peter owns a flat and wants to let it out. The standard rate of property tax
is 16%. Find the monthly rent such that he can earn $52 320 each year
after paying the property tax. (6 marks)

22. (a) Last year, the operating expenses of a corporation was half of the annual
gross profits. If the profits tax paid by the corporation was $63, find the
annual gross profits last year. (Take profits tax rate for corporations 
17.5%.)
(b) The monthly gross profit of a corporation last year was $130 000. If the
operating expenses were 40% of the gross profit, find the profits after
paying the profits tax. (Take profits tax rate for corporations  17.5%.) (6 marks)

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23. The monthly expenses of an unincorporated business was $54 000 last year.
The profits tax was $90 976. Given that the profits tax rate of an
unincorporated business is 16%.
(a) Find the annual gross profit of the company.
(b) Find the average monthly profits after paying profits tax. (5 marks)

For questions 24 – 28, refer to the detailed salaries tax rates and the amounts of
allowances shown below.
Net chargeable income Rate Tax ($)
On the first $30 000 2% 600
On the next $30 000 7% 2100
On the next $30 000 13% 3900
Remainder 19%

Allowances Amount ($)

Basic 100 000
Married person 200 000
Each child 40 000
Each dependent parent/grandparent aged 60 or above 60 000

24. Mr. Wong has two children and his wife is a housewife. He earns $35 500
each month.
(a) Find the total allowance they can get.
(b) Find their net chargeable income.
(c) How much salaries tax do they need to pay? (6 marks)

25. Last year, Mr. and Mrs. Ng earned $135 000 and $175 000 respectively. They
have a son.
(a) Find their net chargeable income.
(b) How much salaries tax do they need to pay? (6 marks)

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26. (a) Mr. Yeung is a teacher. His wife is a housewife and they have 2 children.
If Mr. Yeung earns $21 800 each month, do they need to pay salaries tax?
(b) Tom is single and lives with his 2 dependent grandparents who are over
60. Last year, he did not have to pay any salaries tax. Find his maximum
average monthly income last year. (Give the answer correct to the nearest
$100.) (6 marks)

27. Tony is single and lives with his 2 dependent parents aged 61 and 58. He paid
$10 970 salaries tax this year.
(a) Find his net chargeable income.
(b) Find his average monthly income, correct to the nearest dollar. (5 marks)

28. Christy and Sandy are single and both of them live alone. Last year, Christy’s
net chargeable income was $75 000. If the salaries tax paid by Sandy doubles
that by Christy, find the difference between their net chargeable incomes.
(Give the answer correct to the nearest $100.) (7 marks)

END OF TEST

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