Word Problem 2

Tax & deduction

Problem 2 : If income tax be reduced from 3-1/2 % to 3-1/3%, the difference it makes to man whose annual income is Rs 2500 is;

a. Rs 4.50 b. Rs 4-2/3 c. Rs 4.67 b. Rs 5

Income tax calculation, quantitative mathematics

Solution:

We suppose his income is ;

$Income = Rs 100$ ;

instead !

Now we try to find difference by given information.

$First Tax=3\frac{1}2{}$

$New Tax=3\frac{1}{3}$

Difference in o;ld and new taxes;

$Diffeence = 3\frac{1}{2}-3\frac{1}{3}= \frac{1}{6}$

So, we can say that if income is 100 Rs then difference of tax is Rs 1/6

Now we use unitory method to calculate difference of tax !

1-e

$Rs 100 = Rs \frac{1}{6} tax$

$\Rightarrow Rs 1= Rs \frac{1}{600} tax$

$\Rightarrow Rs 2500= Rs \frac{1}{600} \times 2500tax$

$\Rightarrow Rs 2500= Rs 46.7 tax$

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