A person who pays income tax at the rate of 4 paise per

Home » Aptitude » Simple interest » Question

A person who pays income tax at the rate of 4 paise per rupee, find that a fall of interest rate from 4% to 3.75% diminishes his net yearly income by ₹48. What is his capital ?

If the capital after tax deduction be p, then
p × (4 – 3.75) % = 48

⇒	p × 0.25	= 48
	100

⇒	p × 25	= 48
	10000

⇒	p	= 48
	400

⇒ p = 48 × 400 = ₹ 19200

∴ Required capital =	19200 × 100	= ₹ 20000
	96