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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
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B
₹120
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C
₹130
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D
₹140
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Solution

The correct option is B ₹120Total donations recieved is ₹14,00. Here from the graph, you can see 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 =10100×₹1200 =₹120.

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