Question

A shopkeeper buys an article for Rs. 2,400 from a wholesaler at 20% rebate on its list price. He marks up the list price of the article bought by 10% and then sells it for Rs. 3,498 including sales tax on the marked-up price. Find
(i) the rate of sales tax
(ii) the shopkeeper's profit as per cent.

• A. (i) 6% (ii) 37.5%
• B. (i) 5% (ii) 38.5%
• C. (i) 4% (ii) 39.5%
• D. (i) 3% (ii) 40.5%

Answer 1

The correct option is A (i) 6% (ii) 37.5%

Let the list price of the article is=Rs.x

Rebate=20% on list price

Shopkeeper buys an article for Rs.2400 from wholesaler at rebate 20% on list price

$\therefore x-20\%ofx=2400$

$\Rightarrow x-\frac{20x}{100}=2400$

$\Rightarrow \frac{80x}{100}=2400$

$\Rightarrow x=\frac{2400\times 100}{80}=Rs.3000$

Shopkeeper raised the list price 10% then marked-up price$=3000+10\%of3000$

$\Rightarrow 3000+\frac{10}{100}\times 3000$

$\Rightarrow 3000+300=Rs.3300$

(i)Rate of sales tax

shopkeeper sell the article Rs.3498 including sales tax on marked-up price

Let the rate of sales tax is y%

$\therefore 3300+y\%of3300=3498$

$\Rightarrow 3300+\frac{y}{100}\times 3300=3498$

$\Rightarrow 33y=3498=3300$

$\Rightarrow 33y=198$

$\Rightarrow y=\frac{198}{33}=6$%

(ii)Shopkeeper's profit percent

Shopkeeper buys the article=Rs.2400

He sell the article=Rs.3300

Profit$=3300-2400=Rs.900$

Profit %$=\frac{900}{2400}\times 100=37.5$%