When income tax is 3 paise in a rupee, a person's net income is ₹ 237650. What will it be when the income tax is raised to 7 paise?
(a)₹ 233000
(b)₹ 231650
(c)₹ 227850
(d)None of these
Answer
Answer (as printed): C
Explanation
Let the person's gross income be ₹ $x$. Then, (100-3)\% of $x=237650 \Rightarrow 97 \%$ of $x=237650$ $$\begin{aligned} & \Rightarrow \frac{97}{100} x=237650 \\ & \Rightarrow x=\left(\frac{237650 \times 100}{97}\right)=245000 . \end{aligned}$$ ∴ When income tax is raised to 7\%, we have: Net income $$\begin{aligned} & =(100-7) \% \text { of ₹ } 245000=93 \% \text { of ₹ } 245000 \\ & =₹\left(\frac{93}{100} \times 245000\right)=₹ 227850 . \end{aligned}$$
Explanation as extracted from the printed page; notation may be imperfect.