If the income tax is increased by 19%, the net income is reduced by 1%. The rate of income tax is
Options:
A . 4%
B . 7.2%
C . 5%
D . 6%
Answer: Option C Answer: (c)Let the income be Rs.x and the rate of income tax be y %According to the question,${xy × 1.19}/100 - {xy}/100 = (x - {xy}/100) × 1/100$$1.19 xy - xy = x - {xy}/100$$0.19 y = 1 - y/100$$y/100 + 0.19y = 1 ⇒ ({1 + 19}/100) = 1$$y = 100/20 = 5%$
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