WAEC 2016 · Paper 2 · Q6

(a)
A worker's annual income was $20\%$ tax-free and the remainder was taxed at a rate of 25 kobo in the naira. If he paid a tax of ₦14,000.00 in one year, how much was his income?
(b)
Every month a family spends $\frac25$ of its monthly income on education, $\frac16$ on clothes, $\frac38$ on food and saves the rest. If its monthly income is Le 36,000.00, how many years would it take to save Le 63,000.00?

Worked solution (try it first)

(a)

Let the income be ₦ $x$ .
The taxed part is $80\%$ of it, $0.8x$ .
Tax at 25 kobo in the naira is $25\%$ : $0.25 \times 0.8x = 0.2x = 14\,000$ , so $x = ₦70,000$ .

(b)

The fractions spent add up to $\frac25 + \frac16 + \frac38 = \frac{48 + 20 + 45}{120}$
$= \frac{113}{120}$ , so the family saves $\frac{7}{120}$ of its income: $\frac{7}{120} \times 36\,000 =$ Le 2,100 a month.
To save Le 63,000 takes $\frac{63\,000}{2100} = 30$ months $= 2\frac12$ years.

Report a problem with this question