Word Problem6 (Income Tax)
Problem 6: The annual income of a person is Rs 420000. calculate income tax when tax rate is 5%.
a) 20000 b)20001 c) 20003 d) 220000
Solution:
A questions for maths!
We are given following information;
Annual income = Rs 420000
Tax rate = 5%
So,
Tax = 5% of annual income
i-e
\[ Tax = \frac{5}{100} \times 420000 \]
\[ = 5 \times 4200 = 21000 \]
So , he will pay a tax of Rs 21000
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