Question

Madan pays income tax at the rate of 10%.If his income increased by 10% and his tax rate increase to15%.Hisnet income would increase by rs350. What ismadans income

Answer 1

Let Madan's original income is x.

he pays income tax at the rate of 10%

so, he net income = x - 10% of x = 0.9x

a/c to question,
his income increased by 10% and his income tax increase to 15%

so, his net income = (x + 10 % of x) - 15% of (x + 10% of x)

= 1.1x - 0.15 × 1.1x

= 1.1(0.85)x

now, a/c to question,
his net income increased by 350 Rs.

so, 1.1(0.85)x - 0.9x = 350

or, 0.935x - 0.9x = 350

or, 0.035x = 350

or, 35x = 350,000

or, x = 10,000

hence, his original income is 10,000 Rs.