Question

a) Meenu buys a TV for Rs 10,260 including sales tax. If the list price of the TV is Rs 9,500. Find the rate of sales tax charged.

b) Ms. Chawla goes to a shop to buy a leather coat which costs Rs 735.The rate of sales tax is 5%. She tells the shopkeeper to reduce the price of the coat, such that she has to pay only Rs 735 inclusive of sales tax. Find the reduction needed in the price of the coat?
[6 MARKS]

Answer 1

Each subpart: 3 Marks

a) Sales tax = Rs 10260 - Rs 9500 = Rs 760
$\therefore$ Sales tax $=\frac{760}{9500}\times 100\%=8\%$

b)
Let changed marked price be Rs x
Then 735 = x + 5% of x
$\Rightarrow 735=x+\frac{5x}{100}$
$\Rightarrow 735=\frac{105}{100}x$
$\Rightarrow x=\frac{735\times 100}{105}$
$x=700$
$\therefore$ reduction needed = Rs 735 - Rs 700 = Rs 35