Question

Rate if income tax is increased by 23% and net income is decreased by 2% find the rate of income tax

Answer 1

Solution 1

Let total amount =100=100
income tax rate =x%=x%

Then, income tax amount =x=x
Net income =(100−x)=(100−x)

Increase in income tax amount = decrease in net income. Therefore,

24%24% of xx =1%=1% of (100−x)(100−x)
24x=100−x25x=100x=4

Answer 2

income tax by 23% = net income decreased by 2%
as we can say amount which is increased in income tax is equal to amount which is deduct in net income.
income tax/ net income = 2/23
here we can see 2 is income tax and 23 is net income . so total income is 25.
than rate of income tax = 2×100/25 =8%
it is short and logical method . detailed solution attached with comment...