The table shows the monthly contributions and expenditure pattern of an employee in 1999. Item Percentage Pension 5 Income Tax 25 Food 40 Transport 10 Rent ...
Question 1 Report
The table shows the monthly contributions and expenditure pattern of an employee in 1999.
| Item | Percentage |
| Pension | 5 |
| Income Tax | 25 |
| Food | 40 |
| Transport | 10 |
| Rent | 12.5 |
| Others | 7.5 |
(a) Draw a pie chart to illustrate the data.
(b) If the employee's gross monthly salary was N10,800.00, calculate (i) the pension contribution of the employee ; (ii) the income tax paid by the employee.
(c) If the pension contribution and income tax were deducted from the gross monthly salary, before payment, calculate the take- home pay of the employee.
Answer Details
The percentages account for the whole salary, and they sum to
\[5+25+40+10+12.5+7.5 = 100.\](a) Pie chart
The whole circle is \(360^\circ\), representing \(100\%\). Each item's sector angle is its percentage multiplied by \(\dfrac{360^\circ}{100} = 3.6^\circ\) per unit:
| Item | Percentage (%) | Sector angle |
|---|---|---|
| Pension | 5 | \(\frac{5}{100}\times360^\circ = 18^\circ\) |
| Income Tax | 25 | \(\frac{25}{100}\times360^\circ = 90^\circ\) |
| Food | 40 | \(\frac{40}{100}\times360^\circ = 144^\circ\) |
| Transport | 10 | \(\frac{10}{100}\times360^\circ = 36^\circ\) |
| Rent | 12.5 | \(\frac{12.5}{100}\times360^\circ = 45^\circ\) |
| Others | 7.5 | \(\frac{7.5}{100}\times360^\circ = 27^\circ\) |
| Total | 100 | \(360^\circ\) |
Check: \(18^\circ+90^\circ+144^\circ+36^\circ+45^\circ+27^\circ = 360^\circ.\) The completed pie chart is:
(b) Salary calculations (gross monthly salary \(=\) N10,800.00)
(i) Pension contribution \(= 5\%\) of N10,800, i.e. the \(18^\circ\) sector:
\[\frac{5}{100}\times 10800 \;=\; \frac{18}{360}\times 10800 \;=\; \text{N}540.00.\](ii) Income tax \(= 25\%\) of N10,800, i.e. the \(90^\circ\) sector:
\[\frac{25}{100}\times 10800 \;=\; \frac{90}{360}\times 10800 \;=\; \text{N}2{,}700.00.\](c) Take-home pay
Deduct the pension and income tax from the gross salary. Together they are \((5+25)\% = 30\%\), so the take-home pay is \(100\% - 30\% = 70\%\):
\[10800 - 540 - 2700 \;=\; \frac{70}{100}\times 10800 \;=\; \text{N}7{,}560.00.\]The employee's take-home pay is N7,560.00.
Download The App On Google Playstore
Everything you need to excel in your exams
