Question

A trader buys an article for Rs. 1,700 at a discount of 15% on its printed price. He raises the printed price of the article by 20% and then sells it for Rs. 2,688 including GST on the new marked price. Find :
(i) rate of GST
(ii) the trader's profit percent.

Answer 1

Step 1: Given information:

Amount paid by the trader for the article$=\mathrm{Rs}.1,700$

Discount$=15\%$

Price mark-up$=20\%$

Step 2: Calculate the rate of GST:

Calculate the price after the mark-up.

Let, the printed price of the article be $\mathrm{Rs}.x$.

Since, after the discount of 15%, the cost of the article is Rs.1,700,

$$\begin{gathered} \therefore x-\frac{15}{100}x=1,700 \\ \Rightarrow \frac{85}{100}x=1,700 \\ \Rightarrow x=1,700\times \frac{100}{85} \\ \Rightarrow x=\mathrm{Rs}.2,000 \end{gathered}$$

Since, the trader raises the printed price of the article by 20%,

$$\begin{gathered} \mathrm{Price}\mathrm{after}\mathrm{raising}=2,000+\left(2,000\times \frac{20}{100}\right) \\ \mathrm{Price}\mathrm{after}\mathrm{raising}=2,000+400 \\ \mathrm{Price}\mathrm{after}\mathrm{raising}=\mathrm{Rs}.2,{400}^{} \end{gathered}$$

The selling price of the article without GST$=\mathrm{Rs}.2,400$

The selling price of the article including GST$=\mathrm{Rs}.2,668$

$$\begin{gathered} \mathrm{Rate}\mathrm{of}\mathrm{GST}=\frac{2,688-2,400}{2,400}\times 100 \\ \mathrm{Rate}\mathrm{of}\mathrm{GST}=\frac{288}{2,400}\times 100 \\ \mathrm{Rate}\mathrm{of}\mathrm{GST}=12\% \end{gathered}$$

Step 3: Calculate the trader profit percentage:

$$\begin{gathered} \mathrm{Profit}\%=\frac{2,400-1,700}{1,700}\times 100 \\ \mathrm{Profit}\%=\frac{700}{1,700}\times 100 \\ \mathrm{Profit}\%=\frac{700}{17} \\ \therefore \mathrm{Profit}\%=41\frac{3}{17}\% \end{gathered}$$

Hence, the rate of GST is $12\%$ and the profit percentage of the trader is $41\frac{3}{17}\%$.