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Worked example 113 A man earns 45 000 in a year He can earn 16 000 without paying any tax He pays 24 tax on anything above 16 000 Work out how much tax he pays What percentage of his income does he pay in income tax 45 000 16 000 29 000 24 of 29 000 6960 He pays 6960 This is his taxable income He pays tax on this amount That is 024 x 29 000 6960 45 000 x 100 155 45 000 100 The answer is rounded to one decimal place Exercise 114 1 A woman bought an old chair for 240 She sold it for 300 Work out the percentage profit 2 A man bought a car for 15 900 He sold it for 9500 Work out the percentage loss 3 A trader buys some goods for 820 When he sells them he makes a profit of 35 a Work out the profit in dollars b Work out how much he sells them for 4 A bottle of grape juice costs 650 If you buy six bottles you can get 10 discount Work out how much you save if you buy six bottles 5 A restaurant must add 15 tax to the price of a meal a Here are some bill totals before tax is added Work out the bill after tax is addi i 4220 ii 1950 iii 6480 b The tax rate is increased to 17 Work out how much extra tax must be pai