Question

Tanya buys a leather coat costing Rs. 3,600, the rate of sales Tax being 10%. She asks the shopkeeper to reduce the price of the coat to such an extent that she does not have to pay anything more than Rs. 3,366 including sales tax. Calculate:
(i) The reduction needed in the cost price of the coat.
(ii) the reduction as percent.

Answer 1

(i) Let new sale price of coat = Rs. y
Rate of sales tax = 10%
Total amount paid= Rs3,600
According to question
y + 10% of y = Rs. 3,366
⇒`y+y/10=Rs.3,366`
⇒`(11y)/10 = Rs. 3,366`
⇒`y=(3,366xx10)/11=Rs.3,060`
Reduction needed in the price= Rs. 3,600 − Rs. 3,060 = Rs. 540 Ans.
(ii) Reduction %`=(540xx100)/3600=15%`