Question

A shopkeeper sells an article for Rs.21,384 including 10% tax. However, the actual rate of Tax is 8%. Find the extra profit made by the dealer.

Answer 1

Sale Price of an article including S.T.
= Rs. 21384
Rate of Sales Tax = 10%
$\therefore$ Actual price = $\frac{Totalprice\times 100}{(100+ST}$
= $\frac{21384\times 100}{100+10}$
= $\frac{21384\times 100}{110}=Rs.19440$
In second case, rate of sales tax = 8%
$\therefore$ S.P. = Rs. $\frac{19440\times (100+8)}{100}$
= Rs. $\frac{19440\times 108}{100}$
= Rs. $\frac{2099520}{100}=Rs.20995.20$
$\therefore$ Extra profit = Rs. 21384 - Rs. 20995.20
= Rs. 388.80