Shamila, a teacher at a local high school, is going on retirement - NSC Mathematical Literacy - Question 5 - 2022 - Paper 1
Question 5
Shamila, a teacher at a local high school, is going on retirement. The estimated value of her full pension fund benefit is R3 457 920.00.
Option 1: Withdraw a third... show full transcript
Worked Solution & Example Answer:Shamila, a teacher at a local high school, is going on retirement - NSC Mathematical Literacy - Question 5 - 2022 - Paper 1
Step 1
Write out Shamila's full pension fund benefit in words.
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Answer
Shamila's full pension fund benefit is Three million, four hundred fifty-seven thousand, nine hundred and twenty rand.
Step 2
Determine the amount of money that Shamila can withdraw if she chooses Option 1.
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Answer
The amount Shamila can withdraw is calculated as follows:
rac{1}{3} imes R3,457,920 = R1,152,640
Step 3
Verify, showing ALL calculations, whether her statement is CORRECT.
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Answer
To verify if her statement is correct:
Calculate tax for the pension fund of R3,457,920 using the tax brackets:
Income from R0 to R1,500,000 is taxed at R130,500 plus 36% for the amount above R1,050,000.
