Numeracy Intermediate November 2016 Unit 2 Q3

3. Loretta is paid in euros.
She is checking her tax bill for last year.

The tax rates last year were as follows:

• No tax on the first €3500 of earnings
• Earnings in excess of €3500 and up to €10 500: taxed at a rate of 25%
• Earnings above €10 500: taxed at a rate of 35%

Last year, Loretta’s total earnings before tax were €34 500.

How much tax did Loretta pay in total?
You must show all your working. [6]

Tax paid = € ……………………