Question

Total donations recieved is ₹14,00.
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 ₹14,00.


Here from the graph, you can see that
$\text{when x=200,}theny=0.$

That is because till ₹200 the tax value is nil.

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

Now, tax is levied at the rate of 10 %.

$\text{∴ Tax amount =}10\%of₹1200$
$=\frac{10}{100}\times ₹1200$
$=₹120.$