Question

Madan pays income tax at the rate of 10%. if his income increased by 10% and his tax rate increase to 15%, his net income would increase by rs. 350. what is madan's income?

Answer 1

The income of madan is Rs 10000

Explanation:

Let madan's income be x

Previous tax = 10% = 0.1x

Previous net income = x - 0.1x = 0.9x

New income = x + 10%x = 1.1x

New tax = 15%(1.1x) = 0.15(1.1x) = 0.165x

=> New net income = 1.1x - 0.165x = 0.935x

Now according to question the new net income is Rs 350 more than the previous income

=> 0.9x + 350 = 0.935x

=> 0.035x = 350

=> x = 350/0.035 = 10000

Hence the income of madan is Rs 10000