A house costs C rupees. Later it was sold for a profit of `25%` What is the capital tax if it is `50%` of the profit ?

Options

A. `C//24`
B. `C//8`
C. `C//4`
D. `C//2`

Answer

To solve the problem step by step, let's break it down:

### Step 1: Understand the Cost Price (CP)
The cost price of the house is given as \( C \) rupees.

### Step 2: Calculate the Selling Price (SP)
The house is sold for a profit of 25%. To find the selling price, we can use the formula:
\[ \text{Selling Price (SP)} = \text{Cost Price (CP)} + \text{Profit} \]
The profit can be calculated as:
\[ \text{Profit} = 25\% \text{ of } C = \frac{25}{100} \times C = \frac{C}{4} \]
Now, substituting the profit back into the selling price formula:
\[ \text{SP} = C + \frac{C}{4} = \frac{4C}{4} + \frac{C}{4} = \frac{5C}{4} \]

### Step 3: Calculate the Profit
From the previous step, we found that the profit is \( \frac{C}{4} \).

### Step 4: Calculate the Capital Tax
The capital tax is given as 50% of the profit. Therefore, we can calculate it as:
\[ \text{Capital Tax} = 50\% \text{ of Profit} = \frac{50}{100} \times \frac{C}{4} = \frac{C}{8} \]

### Final Answer
Thus, the capital tax is \( \frac{C}{8} \) rupees.

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