A person earns `Rs 2000` per month over and above his salary as'additional charge allowance. However, `30%` of this ad

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Q 2482434337.     A person earns `Rs 2000` per month over and above his
salary as'additional charge allowance. However, `30%`
of this additional income will be deducted as
additional income tax at source. If the person would
deposit `Rs 1000` per month on a long term saving
fetching `12%` interest his tax liability on the additional
allowance would reduce to` 10%`. What is the effective
interest for this person for money invested in the long
term savings scheme?
IAS 1995 Prelims
A

`12%`

B

`18%`

C

`19%`

D

`20%`

HINT


Solution
(Provided By a Student and Checked/Corrected by EXXAMM.com Team)

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