1. **Problem statement:** Calculate the net income for Mrs. Otieno given her salary, allowances, personal relief, and pension contribution. 2. **Given data:** - Monthly salary = 12400 - House allowance = 8000 - Medical allowance = 2400 - Personal relief (assumed monthly) = unknown exact value, so we will treat it as a deduction after tax - Pension contribution = 1000 per month 3. **Step 1: Calculate gross monthly income** $$\text{Gross income} = 12400 + 8000 + 2400 = 22800$$ 4. **Step 2: Calculate taxable income** Assuming pension contribution is deductible before tax: $$\text{Taxable income} = 22800 - 1000 = 21800$$ 5. **Step 3: Calculate tax (PAYE)** Since tax rates are not provided, we cannot calculate exact PAYE. We will assume personal relief is a fixed amount deducted from tax. 6. **Step 4: Calculate net income** $$\text{Net income} = \text{Gross income} - \text{PAYE} - \text{Pension contribution} + \text{Personal relief}$$ Since PAYE and personal relief amounts are not specified, the exact net income cannot be calculated without additional data. --- For part b), John earns 13636 per annum and is housed by employer. Without tax rates or relief details, exact PAYE and net income cannot be calculated. **Summary:** To calculate net income, we need tax rates and personal relief amounts. The formula is: $$\text{Net income} = \text{Gross income} - \text{PAYE} - \text{Pension contribution} + \text{Personal relief}$$ Without tax rates, the problem cannot be fully solved.