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

here 3500is tax able


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 per month are 26. Find the Gross remuneration of the employee.

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Solution of q 2:


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=0.07*12000=840
Group insurance/Medical=0%=0
Total Allowances=5400+600+840=6840
Gratuity fund=1/11*12000=1090.90
Provident Fund= 1/11*12000= 1090.90
M.s.charge=12000(5.8/100)=696

Gross salary=12000+6840=18840
cost of casual leave per year=12/(26*12)*18840*12=839.04
cost of earned leave per year=24/(26*12)*1840*12=1678.08

Sick leave = 0
Total cost of leaves = 2517.12

Gross Rumen ration = 24234.92
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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. http://www.vustudents.net

Solution
TRADE DISCOUNT

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

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

=9100 *(0.8)*(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?

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 = 177786.13answer



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

i = 11%

P . V = 28000

as we know that

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

F.V = 28000 (1 + 0.11)^ 20

F.V = 28000 ( 8.06)

F . V = 225744.72

F.V = 225744.72 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

1.04%

Question # 7
Suppose you can afford to pay 9,000 per month on a loan. How much can you borrow if the 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 = P.V (1 + i /m) ^ n*m

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

F.V = 9000 (1.0041667 )^ 15*12

F.V = 9000 (2.11383 )

F . V = 19024.47

F.V = 192024.47 answer

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