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Question

A shopkeeper sells an article for ₹16800 with GST = 18%. A customer willing to buy this article, asks the shopkeeper to reduce the price of the article so that he pays only ₹18000 including GST. If the shopkeeper agrees for this, how much reduction will the shopkeeper give?
  1. ₹1645.76
  2. ₹1445.24
  3. ₹1545.76
  4. ₹1585.26


Solution

The correct option is C ₹1545.76
Let the reduction given by shopkeeper be ₹ x.

Reduced price of the article = ₹(16800 - x)

Clearly, the reduced price of the article + GST on it should be = ₹18000

₹(16800 - x) + 18% of ₹(16800 - x) = ₹18000

On solving we get 

16800x+302418x100=18000

118x100=1982418000=1824

x=1545.76

Hence, reduction given by the shopkeeper = ₹1545.76

Alternate method : 
Let the reduced price be ₹x

Reduced Price + GST on it = ₹18000

x + 18% of x = ₹18000

118x100=18000

x=15254.24

Reduction given by the Shopkeeper
              = ₹16800 - ₹15254.24 
              = ₹1545.76

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