Cathy Good is 38 years old. She is a Psychologist. During the current year of assessment, she earned a salary R1 300 000. She contributed 13% of her salary to a retirement fund. Her employer contributed 14% of her salary to her retirement fund. Her remuneration for the current year of assessment is R1 614 000. YOU ARE REQUIRED to calculate the total amount contributed to Cathy Good’s retirement fund in the current year of assessment.a.R351 000b.R169 000c.R483 000d.R182 000
Question
Cathy Good is 38 years old. She is a Psychologist. During the current year of assessment, she earned a salary R1 300 000. She contributed 13% of her salary to a retirement fund. Her employer contributed 14% of her salary to her retirement fund. Her remuneration for the current year of assessment is R1 614 000. YOU ARE REQUIRED to calculate the total amount contributed to Cathy Good’s retirement fund in the current year of assessment.a.R351 000b.R169 000c.R483 000d.R182 000
Solution
To calculate the total amount contributed to Cathy Good’s retirement fund in the current year of assessment, we need to add the amount she contributed and the amount her employer contributed.
First, let's calculate Cathy's contribution: Cathy contributed 13% of her salary to her retirement fund. So, her contribution is 13/100 * R1 300 000 = R169 000.
Next, let's calculate her employer's contribution: Her employer contributed 14% of her salary to her retirement fund. So, the employer's contribution is 14/100 * R1 300 000 = R182 000.
Finally, let's add these two amounts to get the total contribution to the retirement fund: Total contribution = Cathy's contribution + Employer's contribution Total contribution = R169 000 + R182 000 = R351 000.
So, the total amount contributed to Cathy Good’s retirement fund in the current year of assessment is R351 000. Therefore, the correct answer is a. R351 000.
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