Question

Ayesha works as a real estate agent. Her annual gross salary is $28,000. From this, she must pay 20% income tax on anything earned above $15,000. In addition, she must repay a loan at a rate of $140 per month, which is taken out of her post-tax pay (i.e. after the tax has been calculated). What is Ayesha's take home pay per year? Round your answer to the nearest dollar.

Answer 1

Answer:

Step-by-step explanation:

Annual gross salary = $28000

Income tax = 20% on anything above $15000

So she's taxable for $5000

Rent loan = $140 per month = $140 * 12= $1680 per annum

Tax deductible per annum = 20% of $5000

20 / 100 * $5000 = $1000

Total amount she takes home per annum =

Gross salary per annum - tax - loan =

($28000 - $1000 - $1680) = $25,320

Ayesha takes home $25,320 home annually.