Question

A shopkeeper allows a discount of $10\%$ on the marked price of an item but charges a sales tax of $8\%$ on the discounted price. If the customer pays $Rs.680.40$ as the price including the sales tax, then what is the marked price of the item?

• A. Rs. $630$
• B. Rs. $700$
• C. Rs. $780$
• D. Rs. $680$

Answer 1

The correct option is B Rs. $700$

Let marked price be $Rs.x$

Price after discount of $10\%=x-x\times \frac{10}{100}=\frac{9x}{10}$

Price after Tax $=\frac{9x}{10}+(\frac{9x}{10}\times \frac{8}{100})=\frac{972x}{1000}$

It is given that:

$\Rightarrow$ $\frac{972x}{1000}=680.40$

$\Rightarrow$ $x=\frac{680400}{972}$

$\therefore$ $x=Rs.700.$

$\therefore$ Marked price of the item is $Rs.700$