Gross pay is K850. Tax 12% on taxable income, contribute 7% to Nasfund .loan deduction is 5%. What is the net pay ?

First, calculate the taxable income by subtracting the loan deduction from the gross pay:
Loan deduction = 5% of K850 = 0.05 * K850 = K42.50
Taxable income = Gross pay - Loan deduction = K850 - K42.50 = K807.50

Next, calculate the tax amount:
Tax amount = 12% of taxable income = 0.12 * K807.50 = K96.90

Next, calculate the Nasfund contribution:
Nasfund contribution = 7% of gross pay = 0.07 * K850 = K59.50

Finally, calculate the net pay:
Net pay = Gross pay - Tax amount - Nasfund contribution - Loan deduction
Net pay = K850 - K96.90 - K59.50 - K42.50
Net pay = K650.10

Therefore, the net pay is K650.10.

Step 1: Calculate Taxable Income

Gross Pay - Loan Deduction = Taxable Income
K850 - (0.05 x K850) = K807.50

Step 2: Calculate Tax

Tax = 0.12 x Taxable Income
Tax = 0.12 x K807.50 = K96.90

Step 3: Calculate Nasfund Contribution

Nasfund Contribution = 0.07 x Gross Pay
Nasfund Contribution = 0.07 x K850 = K59.50

Step 4: Calculate Net Pay

Net Pay = Gross Pay - Tax - Nasfund Contribution - Loan Deduction
Net Pay = K850 - K96.90 - K59.50 - K42.50
Net Pay = K651.10