New 55% Off on All Courses - Enroll Now! Click Here

    Question

    If the income tax is increased by 18% the net income is

    reduced by 3%. Find the rate of income tax?
    A 15% Correct Answer Incorrect Answer
    B 14.28% Correct Answer Incorrect Answer
    C 10% Correct Answer Incorrect Answer
    D 16.66% Correct Answer Incorrect Answer
    E 12.5% Correct Answer Incorrect Answer

    Solution

    Income tax   x (18 /100)   = Net income x (3/100) Income tax / net income = 3 / 18 Total income = Net income + Income tax Total income = 18 + 3 = 21 Rate of income tax = (3/21) x 100 = 14.28 %

    Practice Next

    Relevant for Exams: