Economics · Oct / Nov 2017 · Paper 12 · Question 19

A worker earns $40 000 a year and pays 20% income tax. He spends $5000 on electrical goods and $10 000 on a car, and pays 20% sales tax on each. How much indirect tax does he pay?

1. A$3000
2. B$5000
3. C$8000
4. D$11 000

As printed in the paper