Question

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

Answer 1

Sale price of bicycle = Rs. 1,664.
List price = Rs. 1,600
$\therefore$ Amount of Sales Tax = Rs. 1,664 - 1,600
= Rs. 64.
$\therefore$ Rate of Sales Tax = $\frac{64\times 100}{1600}=4$%
In second case, rate of sales -tax = 4+6= 10%
$\therefore$ Amount of Sales Tax = $\frac{1600\times 10}{100}=Rs.160$
$\therefore$ Sales price = Rs. 1,600 + Rs. 160= Rs. 1,760