A man's annual income has increased by ₹20 lakhs but the tax on income that he has to pay has reduced from 20% to 16%. He now pays the same amount of tax as earlier. What is his new total income(in ₹ lakhs)?
Let's assume the initial annual income of man is 'y' lakhs.
annual income of man after increase = (y+20) lakhs
y of 20% = (y+20) of 16%
20y = 16(y+20)
5y = 4(y+20)
5y = 4y+80
5y-4y = 80
y = 80
New total income after increase = (y+20) lakhs
= (80+20) lakhs
= 100 lakhs
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