Question

When income tax is $5$ paise in a rupee, a person's net income is $232750$ rupees. What will it be when the income tax is raised to $7$ paise?

• A. $233000$ rupees
• B. $231650$ rupees
• C. $227850$ rupees
• D. $245450$ rupees

Answer 1

The correct option is C $227850$ rupees

Let the person's gross income be $x$ rupees.
Then, $(100-5)\%$ of $x=232750$
$\Rightarrow \frac{95}{100}\times x=232750$
$\Rightarrow x=\frac{232750\times 100}{95}=245000$
Now, when income tax is raised to $7\%,$ we have
Net income $=(100-7)\%$ of $245000$
$=\frac{93}{100}\times 245000$
$\therefore$ Net income $=227850$ rupees