If the income tax is increased by 22%, then net income is reduced by 3%. The rate of income tax is

Options

A. 0.12
B. 0.08
C. 0.1
D. 14.4%'

Answer

To solve the problem, we need to find the rate of income tax given that an increase in income tax by 22% results in a reduction of net income by 3%. Let's break it down step by step.

### Step 1: Understand the relationship between Gross Income, Income Tax, and Net Income
Net Income can be expressed as:
\[ \text{Net Income} = \text{Gross Income} - \text{Income Tax} \]