UCAT Quantitative Reasoning Test #4

Question 1

The table displays the total tax paid (in pounds) on the taxable income for the year.
For instance, someone with a £30,000 annual taxable income will pay £895 plus 15% of (£30,000 - £8,950).
Maria pays income tax of £1,900 each month. What is her annual pay, net of taxes, to the closest £10? How much of her monthly income should she save, roughly speaking?

Accepted Answer

£82,590

Answer

Explanation:
Annual tax paid within 4th bracket = (£1,900 x 12) – £17,890 = £4,910
Income within 4th bracket = £4,910 / 0.28 = £17,535.71 (2dp)
Post-tax Salary = (£87,850 + £17,535.71) – £22,800 = £82,585.71 (2dp) = £82,590 to the nearest £10

Question 2

The table displays the total tax paid (in pounds) on the taxable income for the year.
For instance, someone with a £30,000 annual taxable income will pay £895 plus 15% of (£30,000 - £8,950).
Benny makes a monthly tax payment of £1,450. What is his taxable income per year?

Accepted Answer

£85,890

Answer

Explanation:
Annual tax = £1,450 x 12 = £17,400, i.e. in 3rd tax bracket
Tax paid within 3rd bracket = £17,400 – £4,990 = £12,410
Income within 3rd bracket = £12,410 / 0.25 = £49,640
Total income = £36,250 + £49,640 = £85,890

Question 3

The table displays the total tax paid (in pounds) on the taxable income for the year.
For instance, someone with a £30,000 annual taxable income will pay £895 plus 15% of (£30,000 - £8,950).
Beth receives a promotion at work, and her pre-tax pay increases from £80,000 to £90,000. How big of a difference is there in the tax she pays?

Accepted Answer

£2564.50

Answer

Explanation:
Old tax = £4,990 + [ 25% x (£80,000 – £36,250) ] = £15,927.50
New tax = £17,890 + [ 28% x (£90,000 – £87,850) ] = £18492
Increase = £18492 – £15927.50 = £2564.50

Question 4

The table displays the total tax ($) paid on the taxable income for the year.
For instance, a person with a $30,000 annual taxable income will pay $1,440 in addition to $12,000 + 16 percent of that amount.
Lennie's annual salary is $63,000. How much tax does she pay on her income?

Accepted Answer

$10,732.80

Answer

Explanation:
Total Tax = $6,579.20 + [ 22% x ($63,000 – $44,120) ]
= $6,579.20 + (22% x $1,880) = $6,579.20 + $4,154
= $10,732.80

Question 5

The table displays the total tax ($) paid on the taxable income for the year.
For instance, a person with a $30,000 annual taxable income will pay $1,440 in addition to $12,000 + 16 percent of that amount.
$50,000 is Daniel's taxable income per year. What is the average income tax rate he pays over the course of his full paycheck, to the closest percent?

Accepted Answer

16%

Answer

Explanation:
Annual Tax = $6,579.20 + [ 22% x ($50,000 – $44,120) ]
= $6,579.20 + (22% x $5,880) = $6,579.20 + $1,293.60 = $7,872.80 Average tax rate = 7,872.80 / 50,000 x 100 = 16% (2sf)

UCAT Practice Test

UCAT Practice Test

UCAT Quantitative Reasoning Test #4