Question
A person who pays income tax at the rate of 4 paise per rupee, find that fall of interest rate (income tax) from 4% to 3.75% diminishes his net yearly income by Rs. 48. What is his capital ?
Answer: Option C
Capital after paying income tax
$$\eqalign{
& \Rightarrow {\text{4}}\% - {\text{3}}{\text{.75}}\% = {\text{48}} \cr
& \Rightarrow {\text{0}}{\text{.25}}\% {\text{ = 48}} \cr
& {\text{100}}\% {\text{ = }}\frac{{48}}{{0.25}} \times 100 \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = 19200 \cr} $$
⇒ Capital without paying income tax
⇒ 19200 = Capital × 96%
Net capital = 20000
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Capital after paying income tax
$$\eqalign{
& \Rightarrow {\text{4}}\% - {\text{3}}{\text{.75}}\% = {\text{48}} \cr
& \Rightarrow {\text{0}}{\text{.25}}\% {\text{ = 48}} \cr
& {\text{100}}\% {\text{ = }}\frac{{48}}{{0.25}} \times 100 \cr
& \,\,\,\,\,\,\,\,\,\,\,\,\,\,\, = 19200 \cr} $$
⇒ Capital without paying income tax
⇒ 19200 = Capital × 96%
Net capital = 20000
Was this answer helpful ?
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