Question

A colour TV is available for Rs 13,440 inclusive of sales tax. If the original cost of TV is Rs 12,000, then the rate of sales tax is:

• A. 10%
• B. 12%
• C. 13%
• D. 14%

Answer 1

Answer: (B)

12%

We have list price of the TV=Rs$12000$

Let the rate of Sales Tax be $x$%

Now, the rate of Sales Tax will be$=\frac{x}{100}\times 12000=120x$

Price including sales tax$=13440$

$\Rightarrow 12000+120x=13440$

$\Rightarrow 120x=1440$

$\Rightarrow x=\frac{1440}{120}=12$

So the rate of sales tax is $12$%