A tax rate of 1.8 percent on Rs 84000 amounts to

To calculate the tax amount we use formula Tax equals Principal multiplied by Rate divided by 100. Substituting values gives 84000 multiplied by 1.8 divided by 100 which equals 1512. This is the correct tax amount. Option B matches the result and is correct. Taxation questions are useful in exams because they connect mathematics with real life. Understanding how to compute tax helps individuals and businesses manage their financial responsibilities. Percentage based questions like this test speed and accuracy which are important skills for solving arithmetic problems under exam conditions.