Question

Total donations recieved = $\$1400$

From the graph given, find the tax levied on the the donations if the tax slab is 10% on the amounts exceeding $\$200$.

• A. $100
• B. $120
• C. $130
• D. $140

Answer 1

The correct option is B $120

Total donations recieved is $\$1400$
Here from the graph, you can seee that when $x=200$, then $y=0$.
That is because till $\$200$ the tax value is nil.

So, when $x=200$,
Donation amount on which tax will be levied = $\$1400-\$200$ = $\$1200$

Now tax is levied at the rate of $10\%$.
∴ Tax amount = $10\%of\$1200$
= $\frac{10}{100}\times \$1200=\$120$ .