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Suhani pays tax at the rate of 30% on her entire income of Rs.90,000 and Ritika pays tax at the rate of 40% on her entire income of Rs.y. If the overall tax rate on their combined income comes to 37%, then what is the value of y?
Rs.2,04,000
Rs.2,16,000
Rs.2,13,000
Rs.2,10,000
To solve this problem, we need to find Ritika's income (Rs.y) such that the combined tax rate of Suhani and Ritika is 37%. Let's go through the calculations:
- Suhani's income: Rs.90,000
- Suhani's tax rate: 30%
- Ritika's tax rate: 40%
- Total income combined tax rate: 37%
First, calculate Suhani's tax:
$$ \text{Tax paid by Suhani} = 30\% \times 90,000 = Rs.27,000 $$
Next, denote Ritika's income as y.
Her tax paid is:
$$ \text{Tax paid by Ritika} = 40\% \times y = 0.4y $$
Together, they have a combined income of:
$$ 90,000 + y $$
The total tax paid by both is:
$$ 27,000 + 0.4y $$
The combined tax rate can be calculated as:
$$ \frac{27,000 + 0.4y}{90,000 + y} = 37\% = 0.37 $$
Cross-multiply to solve for y:
$$ 27,000 + 0.4y = 0.37 \times (90,000 + y) $$
$$ 27,000 + 0.4y = 33,300 + 0.37y $$
Subtract 0.37y from both sides:
$$ 27,000 + 0.03y = 33,300 $$
Solve for y:
$$ 0.03y = 33,300 - 27,000 $$
$$ 0.03y = 6,300 $$
$$ y = \frac{6,300}{0.03} $$
$$ y = 2,10,000 $$
- Option 4: Rs.2,10,000 is indeed the correct value of y.
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By: Parvesh Mehta ProfileResourcesReport error
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