Personal Tax 2012/13 Question Help

nmj

Hi i'm stuck on this question can someone help me out:

Nps

You're almost right.

You need the average of the loan amount outstanding at the start of the year and the amount outstanding at the end of the year (you have the figures right but your reasoning is slightly wrong).

You then multiply by 2% as you have done, but not by 9/12 as the loan is not completely paid off.

Nps

I believe so. This is using the average method, but you would get a slightly different answer if you used the strict method (I would imagine you are expected to use the average method though).