When income tax is 3 paise in a rupee, a person's net income is Rs. 237650. What will it be when the income tax is raised to 7 paise ?

A. Rs. 233000

B. Rs. 231650

C. Rs. 227850

D. None of these

Answer: Option C

Solution(By Examveda Team)

Let the person's gross income be Rs. $$x$$
Then,
⇒ (100 - 3)% of $$x$$ = 237650
⇒ 97% of $$x$$ = 237650
⇒ $$\frac{97x}{100}$$ = 237650
⇒ $$x$$ = $$\left( {\frac{{237650 \times 100}}{{97}}} \right)$$
⇒ $$x$$ = 245000
∴ When income tax is raised to 7%, we have :
Net income :
= (100 - 7)% of Rs. 245000
= 93% of Rs. 245000
= Rs. $$\left( {\frac{{93}}{{100}} \times 245000} \right)$$
= Rs. 227850