// Numbas version: finer_feedback_settings {"name": "Q5 Calculating tax credit", "extensions": [], "custom_part_types": [], "resources": [], "navigation": {"allowregen": true, "showfrontpage": false, "preventleave": false, "typeendtoleave": false}, "question_groups": [{"pickingStrategy": "all-ordered", "questions": [{"functions": {}, "ungrouped_variables": ["standard", "higher", "salary", "name", "tax", "cut", "ans"], "name": "Q5 Calculating tax credit", "tags": ["rebelmaths"], "advice": "

First calculate the gross income tax:

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standard rate:

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$\\var{cut} \\times (\\frac{\\var{standard}}{100})$

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higher rate:

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$(\\var{salary}-\\var{cut}) \\times (\\frac{\\var{higher}}{100})$

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gross income tax = standard rate + higher rate

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Then remember,

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income tax =  gross income tax - tax credit

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=> tax credit = gross income tax - income tax

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or mathematically:

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$((\\var{cut} \\times \\frac{\\var{standard}}{100}) +((\\var{salary}-\\var{cut}) \\times \\frac{\\var{higher}}{100})) - \\var{tax} = €\\var{ans}$

", "rulesets": {}, "parts": [{"stepsPenalty": "1", "prompt": "

$\\var{name}$ has an annual salary of €$\\var{salary}$ and her standard cut-off point is €$\\var{cut}$. The standard rate of income tax is $\\var{standard}$% and the higher rate is $\\var{higher}$%. If she pays €$\\var{tax}$ in income tax for the year, calculate her tax credit.

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€[[0]]

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First calculate the gross income tax:

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standard rate:

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x * ({standard}/100)

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higher rate:

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y * ({higher}/100)

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gross income tax = standard rate + higher rate

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Then remember,

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income tax =  gross income tax - tax credit

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First consider the first $\\var{cut}$ euro of her income. Calculate $\\var{standard}$% of $\\var{cut}$.

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Find how much money is taxed at the higher rate and find $\\var{higher}$% of this.

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Now you can find her gross tax.

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gross tax - credit = net tax. If we move this around we get credit = gross tax - net tax

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Calculate to the nearest euro:

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Tax credits

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rebelmaths

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