Help in business algebra
Introduction :
In Business algebra, we calculate simple interest, compound interest, Annuities, profit and loss in shares, Discount on bills, Calculation of pay roll, wages, commission etc... In this article let us see how to calculate net salary of a person.
Help in learning terms in business algebra
Every employer maintains the payroll of employees as a bonfide record showing the periodic salary, deductions on PF, Insurance, tax, advances, loans etc... The salary earned by an employee without any deduction is called net salary. Usually the salary is paid once in a month.
Wages: It is a payment made to a person in proportion to the number of days or weeks worked. It is defined as daily wages or weekly wages.
Over time: It is the work done by an employee beyond the specified period prescribed by the employer. For his work he earns remuneration called overtime pay.
Commission: It is a kind of remuneration paid to an agent, salesman, etc.., based on the amount of business done. The rate of commission is a percentage of the value of the goods sold.
Help in calculating wages in business algebra
A person gets a bank slary of $800 per month. In addition to this he gets house rent allowance at 10% of his basic and city compensatory allowance at 15% of his basic. The dearness allowance is $450. From his salary he pays 10% of his basic towards provident fund, 5% of the basic towards income tax and $120 as insurance premium and $20 towards employees welfare fund. What is his net salary.
Solution:
Gross salary:
1Basic salary$8002house rent allowance at 10%$803city compensatory allowance at 15%
$1204Dearness allowance$450 Total$1450
Deductions:
1provident fund$802income tax$403insurance premium$1204employees welfare fund$20 $260 Net salary = $1450 - $260 = $1190
I like to share this how to calculate compound interest and What is Simple Interest? with you all through my blog.
In Business algebra, we calculate simple interest, compound interest, Annuities, profit and loss in shares, Discount on bills, Calculation of pay roll, wages, commission etc... In this article let us see how to calculate net salary of a person.
Help in learning terms in business algebra
Every employer maintains the payroll of employees as a bonfide record showing the periodic salary, deductions on PF, Insurance, tax, advances, loans etc... The salary earned by an employee without any deduction is called net salary. Usually the salary is paid once in a month.
Wages: It is a payment made to a person in proportion to the number of days or weeks worked. It is defined as daily wages or weekly wages.
Over time: It is the work done by an employee beyond the specified period prescribed by the employer. For his work he earns remuneration called overtime pay.
Commission: It is a kind of remuneration paid to an agent, salesman, etc.., based on the amount of business done. The rate of commission is a percentage of the value of the goods sold.
Help in calculating wages in business algebra
A person gets a bank slary of $800 per month. In addition to this he gets house rent allowance at 10% of his basic and city compensatory allowance at 15% of his basic. The dearness allowance is $450. From his salary he pays 10% of his basic towards provident fund, 5% of the basic towards income tax and $120 as insurance premium and $20 towards employees welfare fund. What is his net salary.
Solution:
Gross salary:
1Basic salary$8002house rent allowance at 10%$803city compensatory allowance at 15%
$1204Dearness allowance$450 Total$1450
Deductions:
1provident fund$802income tax$403insurance premium$1204employees welfare fund$20 $260 Net salary = $1450 - $260 = $1190
I like to share this how to calculate compound interest and What is Simple Interest? with you all through my blog.