Problems in Real Life related to our traditional Mathematical Calculations

In our real life, there are many situations in which we have to make some calculations which may be basically illogical

. This can be explained with a simple example.

Suppose in a particular country, the individuals who have earned upto 10,000$ have to pay 10% of their income as tax and those with an income between 10,000$ - 20,000$ have to pay 20% as tax.

10% of 10,000$ => 1000$ tax

20% of 10,000$ => 2000$ tax

20% of 20,000$ => 4000$ tax

Suppose a person has 9990$ as income, then he has to give 999$ as tax. A person having 10010$ has to pay 2002$ as tax. That is eventhough there is a difference of 20$ in the income, the difference in the associated taxes is 1003$.This may lead the people to show their income as a less value than the actual.

If we use some other methods for calculations we can avoid this problem.

For eg: [Amount]^2 x Percent of increase

----------------------------------------------

[upper limit - lower limit] x 100

where Amount is the amount of salary.

lowerlimit is the limit from which there is an increase of percentage in the tax and upperlimit is the limit upto which that percentage remain unchanged.

Here innerlimit is 10,000$ and outerlimit is 20,000$.

Then {[10,000]^2 x [20-10]} / {[20,000 - 10,000]x100} = 1000$

{[10,010]^2 x [20-10]} / {[20,000 - 10,000]x100} = 1002.001$

{[12,500]^2 x [20-10]} / {[20,000 - 10,000]x100} = 1562.5$

{[15,000]^2 x [20-10]} / {[20,000 - 10,000]x100} = 2250$

{[17,500]^2 x [20-10]} / {[20,000 - 10,000]x100} = 3062.5$

{[20,000]^2 x [20-10]} / {[20,000 - 10,000]x100} = 4000$.

Here the increase in a special type of proportion and there is not enough benefits by showing the income a little less than the actual. So there is lesser chance for cheating.......

Also the similar problem may be seen in many other situations...( ie in situations where upto a particular limit a particular percentage, and above that an increase in percentage etc in the calculations)..................................

Problems in Real Life related to our traditional Mathematical Calculations

By: salini

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