Question

If a person's income increases from Rs. 10 lakhs per year to Rs. 11 lakhs per year and tax increases from Rs. 80,000 to Rs. 92,500 the marginal tax rate is
A) 12.50% B) 8% C) 10% D) 15%

Answer 1

Answer:

12.50%

Explanation:

92500-80,000=12500

11lakh-10 lakh=1 lakh( 1,00000)

12500/100000 ×100=12.5%