Question 1:

If the basic salary of an employee is Rs. 37000 and allowances are Rs. 22,000.

What is the taxable income of employee?

Solution:

Basic salary = 37000

Allowances = 22,000

As we now that allowance is always 50% of the basic salary

So here basic salary is 37000 * 50 / 100 = 18500

And 22000 - 18500 = 3500

Hence 3500 Rs. of allowances are taxable.

Total taxable income = 37,000 + 3500 = 40,500 Rs

Question 2:

If the salary and allowances of an employee is as follows:

Basic salary = Rs. 12,000

House Rent Allowance = 45%

Conveyance Allowance = 5%

Utilities Allowance = 7%

Group Insurance/Medical = 0%

Misc. Social Charges = 5.8%

There are 12 casual, 24 earned and no sick leaves per year where as normal working days er month are 26. Find the Gross remuneration of the employee.

Solution:-

Basic salary=12000

House rent allowance = 45% = 45/100 = 0.45 = 0.45*12000 = 5400

Conveyance allowances = 5% = 5/100 = 0.05 = 0.05*12000 = 600

Utility allowances = 7% = 7/100 = 0.07 = 0.07*12000 = 840

Group insurance/Medical = 0% = 0

Total Allowances = 5400 + 600 + 840 = 6840

Misc. Social Charges = 5.8/100 * 18840 = 1092.72

Gross salary =12000 + 6840 = 18840

Cost of casual leave per year=12/(26*12)*18840*12 = 8695.38

Cost of earned leave per year=24/(26*12)*18840*12 = 17390.76

Sick leave = 0

Total cost of leaves = 26086.14/ 12 = 2173.845

Now Find Gross Remuneration By Your Selfâ€¦

Question 3:

A trade discount series of 20, 10, and 5 is offered on an item which has a list price of Rs.9100. Find the amount of discount and the net price.

Solution

TRADE DISCOUNT

Net Price = L* (1 - D)*(1 - D)*(1 - D)

= 9100 *(1- 0.2)*(1-0.1)*(1-0.05)

=9100 *(0.

*(0.9)*(0.95)

=9100*0.684

=6224.4

DISCOUNT

Net price = 9100 - 6224.4

= 2875.6

Question 4:

If your goal is to have an amount of 325000 in seven years and you can get interest rate of 9% per annum compounded annually. How much would you need to invest now?

Solution:

Given

n = 7

i = 9 %

F. V = 325000

As we know that

F.V = P.V (1 + i ) ^ n

325000 = P.V (1 + 0.09)^ 7

325000 = P.V ( 1.83)

P. V = 325000/1.83

P.V = 177595.62 answer

Question 5:

If you start saving Rs. 28,000 at the end of each six month, and you get interest rate 11% per annum) compounded semi-annually, how much will you have accumulated at the end of 20 years?

Solution:

Given

n = 20 x 2 = 40

i = 11% = 0.11/2 =0.055

P. V = 28000

As we know that

F.V = P.V (1 + i ) ^ n -1 /i

F.V = 28000 (1 + 0.055)^40 - 1 / 0.055

F.V = 28000 ( 136.60)

F. V = 3824800

F.V = 3824800 answer

Question 6:

The price of an item decreased from Rs. 856 to Rs.752. What is the percentage change in price of item?

Solution

Percentage change in price of item

856 - 752 = 104

Percentage change =104/856 *100 = 12.149%

Question # 7

Suppose you can afford to pay 9,000 per month on a loan. How much can you borrow if he loan is for a period of 15 years and the interest rate is 5% per annum compounded monthly?

Solution

Given

n = 15

m =12

i = 5%

P .V = 9000

As we know that

F.V = 9000 ([1 - 1/(1+i/m)^n*m]/i/m

F.V = 9000([1 -1/(1+0.05/12)^15*12]/0.05/12

F.V = 9000([1 - 1/(1+0.0041667)^180]/0.0041667

F.V = 9000([1 - 1/(1+0.0041667)^180]/0.0041667

F.V = 9000([1 - 1/(1.0041667)^180]/0.0041667

F.V = 9000([1 - 1/2.1137]/0.0041667

F.V = 9000([1 - 0.4731]/0.0041667

F.V = 9000[0.5269]/0.0041667

F.V = 9000[126.4549]

F.V = 1138094 answer