The table shows the monthly contributions and expenditure pattern of an employee in 1999. Item
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.
Explanation
(a)
| Items | Percentage(%) | Degree in pie chart |
| Pension | 5 | \(\frac{5}{100} \times 360° = 18°\) |
| Income tax | 25 | \(\frac{25}{100} \times 360° = 90°\) |
| Food | 40 | \(\frac{40}{100} \times 360° = 144°\) |
| Transport | 10 | \(\frac{10}{100} \times 360° = 36°\) |
| Rent | 12.5 | \(\frac{12.5}{100} \times 360° = 45°\) |
| Others | 7.5 | \(\frac{7.5}{100} \times 360° = 27°\) |
| 100 | 360° |
A pie- chart showing the monthly contributions and expenditure pattern of an employee in 1999.
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(b)(i) \(360° = N10,800.00\)
\(\text{Pension} - 18° = \frac{18}{360} \times N10,800\)
= \(N540\)
(ii) \(360° = N10,800.00\)
\(\text{Income tax} - 90° = \frac{90}{360} \times N10,800\)
= \(N2700\)
(c) The percentage sum of pension and income tax = (5 + 25)% = 30%
Take home pay = 100% - 30% = 70%
= \(\frac{70}{100} \times N10,800\)
= \(N7560\)