A person who pays income tax at the rate of 4 paise per rupee, find that fall of interest rate (income tax) from 4% to 3.75% diminishes his net yearly income by Rs. 48. What is his capital ?

Answer: Option C

Capital after paying income tax
$$\begin{array}{rl}& \Rightarrow \text{4}\%-\text{3}\text{.75}\%=\text{48}\\ & \Rightarrow \text{0}\text{.25}\%\text{ = 48}\\ & \text{100}\%\text{ = }\frac{48}{0.25}\times 100\\ & =19200\end{array}$$
⇒ Capital without paying income tax
⇒ 19200 = Capital × 96%
Net capital = 20000