Question : The table given below represents the cost, revenue, and tax rate for XYZ Limited for a period of 8 years. Cost and revenue are given in crores.
Profit for any year = Revenue – Cost Profit after tax for any year = profit of that year – tax of that year Tax on any year = tax rate of that year $×$ profit of the year What is the total sum (INR crore) of profit after tax from Y1 to Y8?
Option 1: 1763.6
Option 2: 1803.2
Option 3: 1829.2
Option 4: 1872.4
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Correct Answer: 1829.2
Solution : The total sum of profit = Profit of Y1 + Profit of Y2 + Profit of Y3 + Profit of Y4 + Profit of Y5 + Profit of Y6 + Profit of Y7 + Profit of Y8. Profit (before tax) for Y1, 800 – 600 = 200 Profit (before tax) for Y2, 1100 – 850 = 250 Profit (before tax) for Y3, 1200 – 900 = 300 Profit (before tax) for Y4, 1200 – 950 = 250 Profit (before tax) for Y5, 1350 – 1050 = 300 Profit (before tax) for Y6, 1500 – 1200 = 300 Profit (before tax) for Y7, 1600 –1240 = 360 Profit (before tax) for Y8, 1850 – 1400 = 450 So, the total sum of profit = 200 × (1 – $\frac{20}{100}$) + 250 × (1 – $\frac{22}{100}$) + 300 × (1 – $\frac{22}{100}$) + 250 × (1 – $\frac{25}{100}$) + 300 × (1 – $\frac{30}{100}$) + 300 × (1 – $\frac{30}{100}$) + 360 × (1 – $\frac{33}{100}$) + 450 × (1 – $\frac{13}{100}$) = 160 + 195 + 234 + 187.5 + 210 + 210 + 241.2 + 391.5 = 1829.2 (in INR crore) Hence, the correct answer is 1829.2.
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