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Saturday, July 1, 2023

CFAT Practice Test Questions with Answers in PROBLEM SOLVING - ps012

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1. Andrew lives in Ontario and earned a gross income of $64,000 in 2022. According to his income bracket, his federal tax rate in Canada is 20.5%. If his provincial tax rate is 9.15%, what is his income after taxes?


a. $45,024 -- answer

b. $42,045

c. $45,420

d. $42,540


Solution:

step1: solve federal tax

Canada federal tax

= $64,000 x 20.5%

= $64,000 x 0.205

= $13,120


step2: solve provincial tax

Ontario provincial tax

= $64,000 x 9.15%

= $64,000 x 0.0915

= $5,856


step3: income after taxes

Income after taxes

= gross income

- federal tax

- provicial tax


Income after taxes

= $64,000

- $13,120

- $ 5,856

----------------------

$45,024



2. Michael's average grade for Chemistry, Math, and English is 85. If his grade in Chemistry is 90 and Math is 87, what is his grade in English?


a. 79

b. 78 --- answer

c. 77

d. 76


Solution:

Let x

= Michael's grade in English


Average grade = 85

Chemistry = 90


Math = 87



Average grade

= (Chemistry + Math

+ English)/3


85 = (90 + 87 + x)/3



cross multiply

90 + 87 + x = 85 * 3

177 + x = 255

x = 255 - 177

x = 78


checking:

Average

= (90 + 87 + 78)/3

= 85


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