If the income tax is increased by 17% then the net income is decreased by 3%. Find the rate of income tax.
Answer & explanation
Correct answer: option 1
Income = net income + tax
ATQ, Tax × \(\frac{17}{100}\) = Net income × \(\frac{3}{100}\)
\(\frac{Tax}{Net income}\) = \(\frac{3}{17}\)
Income = 20
Rate if income tax = \(\frac{3}{20}\) × 100 = 15 %