Question

A retailer sells an article for Rs 5,350 including 7% sales tax on the listed price. If he bought it at a discount and has made a profit of 25% on the whole, find the rate of discount the retailer received.

Answer 1

Selling price for the retailer inclusive of sales tax = Rs 5350

Rate of sales tax = 7%

Let sale price (list price) for the retailer be Rs x

∴ x +  7% of x = 5350

`=> (107x)/100 = 5350`

=> x = 5000

Let purchase price for retailer = Rs a

Profit % = 25%

`:. a + 25% "of"  a = 5000`

`=> (125a)/100 = 5000`

`=> a = 4000`

Discount = Rs 5000 - Rs 4000 = Rs 1000

Discount% = `"Discount"/"Marked price" xx 100`

`= 1000/5000 xx 100`

= Rs 20

The retailer gets a discount of 20%