UPSC Prelims 1995 · General Studies
Question 150: Basic Numeracy
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 in 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?
The published answer to this question looks wrong to us, so none is shown until it has been checked.
Source: UPSC, Civil Services (Preliminary) Examination 1995, General Studies. UPSC's own paper isn't online; the words are from a published compilation. The paper on upsc.gov.in.