Question

A bicycle is available for Rs. 1,664 including Sales Tax. If the list price of the bicycle is Rs. 1,600, find:
(i) the rate of Sales Tax
(ii) the price, a customer will pay for the bicycle if the Sales Tax is increases by 6%.

• A. (i) 1%
  (ii) Rs. 1,110
• B. (i) 2%
  (ii) Rs. 1,290
• C. (i) 3%
  (ii) Rs. 1,530
• D. (i) 4%
  (ii) Rs. 1,760

Answer 1

The correct option is D (i) 4%

(ii) Rs. 1,760
let the rate of sales tax=x%

$\therefore 1600+x\%of1600=1664$

$\Rightarrow \frac{x}{100}\times 1600=1664-1600$

$\Rightarrow 16x=64$

$\Rightarrow x=\frac{64}{16}=4$%

If the Rate of sales tax is increased by 6% then

Slaes price $\Rightarrow 1600+(4+6)\%$of 1600

$\Rightarrow 1600+\frac{10}{100}\times 1600$

$\Rightarrow 1600+160=Rs.1760$