Financial Math Answers

From the information below concerning an employed Kenyan on a pension scheme, calculate the gross pay, chargeable pay, tax charged and PAYE for the individual (Clearly explain and show your workings)

Description AMOUNT

Basic Pay 163,562

ALLOWANCE

Housing Amount 139,675

Commuting Allowance 10,000

Gross Pay ???

TAX CALCULATIONS

Defined Contributions 200

Provident Fund 16,356.2

Taxable Pay ???

Tax Charged ???

Personal Relief 1,408

STATUTORIES

N.S.S.F 200

N.H.I.F 1,700

P.A.Y.E ???

The company made a profit before tax of Ksh. 14,000,080 in the past 12 months of accounting

-The company made a net book loss of Ksh.1,100,050 in the year 2019

-The company engaged in consultancy services in the year 2020 where they were paid Ksh. 5,000,000

-The company supplied vaatable goods worth Ksh. 3,500,000 and Ksh. 9,000,000 in the years 2019 and 2020 respectively

-The company is seeking to invest Ksh. 7,000,000 in the coming year in a foreign country and in a different line from what they are dealing with in Kenya

Required:

(I) Calculate the different taxes due from the company as at the close of the year 2020 (6 mks)

(ii) Advise the company concerning their planned investment in terms of the taxation concept of incvestment. (3 mks)

c) Explain the relevance of Ability to pay theory in Kenya as applied in the principle of taxation.

How much Ione invest if she wants to have P19,640.62 at the end of 2.75 years at a bank that offers 11(1/4)% simple interest.

A php 300 per share dividend was paid by a certain stock. The dividend is estimated to grow at 4.75% per year until further notice. What is the price of the stock today if the required return is 8.75%

luz paid P1,080 in interest on a P3,060 loan she got from the credit union. The term of the

loan is 3 years. Find the rate.

paid P1,080 in interest on a P3,060 loan she got from the credit union. The term of the

loan is 3 years. Find the rate.

Find the percent gain or percent loss when a car bought for PhP 925 000 is sold for

PhP 850 000.

Alfred buys an old scooter for PhP 14 700 and spends PhP 1 800 on its repairs. If

he sells the scooter for PhP 15 800, what is his percent gain or percent loss?