Question

Anis spends 4% of his income on a life
insurance policy, and this part is exempted
from income tax. His income-tax which
is levied at 3% on his remaining earning
amounts to 108. Find his
gross
income.​

Answer 1

Answer:

Let his gross income be p

He spends 4% for insurance

Remaining income = p×(1-0.04)= p×0.96

Income tax is on this income

Tax= p×0.96×0.03 = 108

p= 108/(0.96×0.03)

p=3750

Answer 2

Answer:

Ani's gross income is Rs.3,750

Step-by-step explanation:

Let gross income be RS.X

Amount spend on life insurance= 4% of X

                                                     = (4/100)×X

                                                     = X/25

Remaining amount= total amount -amount spend on life insurance

                               = X -(X/25)

                               = (25X- X)/25=24X/25

Income tax= 3% of remaining amount

         108   = (3/100) × (24X/25)

        108 = 72X/2500

       72 X=108×2500

           X= 270000/72=Rs.3750