Question

A shopkeeper sells an article for $\text{Rs.}21,384$ including $10\%$ sales-tax. However, the actual rate of sales-tax is $8\%$. Find the extra profit made by the dealer.

• A. $\text{Rs.}224.80$
• B. $\text{Rs.}320.80$
• C. $\text{Rs.}388.80$
• D. $\text{Rs.}455.80$

Answer 1

The correct option is C $\text{Rs.}388.80$

Let, the Cost Price of the article $=\text{C.P.}=\text{Rs.}x$

Then $x+10\%$ of $x=\text{Rs.}21384$

$x+\frac{10x}{100}=21384$

$x+\frac{x}{10}=21384$

$\frac{11x}{10}=21384$

$x=\frac{213840}{11}=\text{Rs.}19440$

Actual rate of tax$=8\%$

$\therefore$ Selling Price after tax$\text{S.P.}=19440+8\%$ of $19440$

$19440+\frac{8}{100}\times 19440$

$19440+1555.2=\text{Rs.}20995.20$

Profit made by shopkeeper$=\text{Rs.}(21384-20995.20)=\text{Rs.}388.80$