post-tax profit

[honey]

rate of profit 20%
profit income taxed 30%
rate of inflation 5%...........then post tax profit is......

[Amit Goyal]

approx 9%

[honey]

plz sir .....explain how do we get it

[Amit Goyal]

profit rate after tax = ((x/1.05)(1.14) - x)/x where x is the amount invested.

[Amit Goyal]

Think like this:
you had 100,
gross profit is 20.
Due to 5% inflation present value of 100 tomorrow is 95 today. So you lost 5 due to inflation.
You lose 6 of profits as tax (30% on 20)
20 - 6 - 5 = 9