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The cost of a house was Rs X lakhs in 20...

The cost of a house was Rs X lakhs in 2005. After 3 years, the house sold it for `25%` more than she paid it. But she has to pay a tax of `50%` of the gain. The tax amount she has to pay is.

A

`(X)/(2)`

B

`(X)/(8)`

C

`(X)/(4)`

D

`(X)/(24)`

Text Solution

AI Generated Solution

The correct Answer is:
To solve the problem step by step, we can follow these calculations: ### Step 1: Determine the Cost Price (CP) The cost of the house in 2005 is given as Rs. X lakhs. ### Step 2: Calculate the Selling Price (SP) The house is sold for 25% more than the cost price. - To find the selling price, we can use the formula: \[ SP = CP + (25\% \text{ of } CP) \] - Since \( CP = X \) lakhs, we can express this as: \[ SP = X + 0.25X = 1.25X \text{ lakhs} \] ### Step 3: Calculate the Gain The gain is the difference between the selling price and the cost price. - The gain can be calculated as: \[ \text{Gain} = SP - CP = 1.25X - X = 0.25X \text{ lakhs} \] ### Step 4: Calculate the Tax on the Gain The problem states that a tax of 50% of the gain must be paid. - The tax amount can be calculated as: \[ \text{Tax} = 50\% \text{ of Gain} = 0.5 \times (0.25X) = 0.125X \text{ lakhs} \] ### Step 5: Convert the Tax Amount to a Fraction To express the tax amount in a simpler form: - We can write: \[ \text{Tax} = \frac{0.125X}{1} = \frac{X}{8} \text{ lakhs} \] ### Final Answer The tax amount she has to pay is \( \frac{X}{8} \) lakhs. ---
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