Latest Bank Exam Aptitude Question SOLUTION: X’s salary is increased by 20%. On the increase, the tax rate is 10% higher. Find the percentage of increase in the tax liability

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(#M40156597) BANK EXAM Numerical Ability question Keep an EYE

X’s salary is increased by 20%. On the increase, the tax rate is 10% higher. Find the percentage of increase in the tax liability

Asked In Bank Exam arun kumar (7 years ago)

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Read Solution (1) :

Subhayan Roy  (7 years ago)

Solution:
If Previously he had to pay say Rs. X as tax
After increase of 20% in salary he had to pay 20X/100 = X/5 Rs More Tax
But in that increased amount the tax is also 10% Higher
So now he had to pay (X/5)*(110/100) = 11X/50 Rs More Tax than Previous!
So the increased % is ((11X/50)/X)*100 = 22% (Ans)

ShortCut:
If there is no increase in Taxation....
Then 20% increase in salary implies 20%increase in Tax (as tax varies linearly with salary)
now in that increased salary the tax also increased by 10%
That means the total increase = 20 + 10% of 20 = 20+2 = 22% (Ans)

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