Question

A trader buys an article for Rs. 1,700 at a discount of 15% on its printed price. He raises the printed price of the article by 20% and then sells it for Rs. 2,688 including sales tax on the new marked price. Find:
(i) the rate of sales tax
(ii) the trader’s profit as per cent

Answer 1

Let the printed price = Rs. y
Discount% = 15%
Cost price = Rs. 1,700
∴ list price – discount = Rs. 1,700

⟹ y – 15% of y = Rs. 1,700

⟹ y `( 3y)/20`=𝑅𝑠.1,700

⟹`(17y)/20`=𝑅𝑠.1,700

⟹ `y = Rs. (1,700xx20)/17 =Rs. 2,000`

New printed price = Rs. 2,000 + 20% of Rs. 2,000

= Rs. 2,000 + (20/100) ×2,000

= Rs. 2,000 + Rs. 400 = Rs. 2400

Selling price inclusive of sales tax = Rs. 2,688

Sales tax = Rs. 2,688 – Rs. 2,400 = Rs. 288

(i) ∴ Rate of sales tax `="sales tax"/"sales price"xx100%`

                                 `= 288/2400xx100%=12%`

(ii) Profit = Rs. 2,400 – Rs. 1,700 = Rs. 700

∴ Profit % `= "profit"/"cost price"xx100%=700/1700xx100%=41 3/17%`Ans.