Calculate the annual salary

MathProblems26

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Apr 13, 2014
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John has the same tax credit and standard rate cut off point as Mary (tax credit €2,200 and cut off point €28,000) and his net pay is €3480 more than Marys. Mary`s net pay is €32,720. Calculate Johns annual salary.

Standard Tax Rate is at 20%
Higher rate of tax is at 42%

How do you find his salary before deductions were made?
 
John's = 32720 + 2480 = 36200.

IF I follow correctly, then (a = annual salary):
a - [.20(28000) + .42(a - 28000)] = 36200

Solve for a.

Thank you for your help. That is a brilliant method to solve it. However, where do I put in €2200 in tax credits into the equation?

The answer is meant to be €48000 if that also helps. However, I am beginning to wonder if €48000 is the correct answer :confused:
 
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