
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 ?

 ₹24,000
 ₹25,000
 ₹20,000
 ₹18,000
 ₹24,000
Correct Option: C
If the capital after tax deduction be p, then
p × (4 – 3.75) % = 48
⇒  = 48  
100 
⇒  = 48  
10000 
⇒  = 48  
400 
⇒ p = 48 × 400 = ₹ 19200
∴ Required capital =  = ₹ 20000  
96 