Cost price of an item is ₹ 1000. If the sales tax charged is 20% of cost price, then the bill to be paid is

₹1000

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₹1200

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₹1400

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₹1500

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Solution

The correct option is B ₹1200
Sales tax charged = 20% of cost price
= 20% of 1000
= $\frac{20}{100} \times 1000$
= ₹ 200

∴ Total amount to be paid
= cost price + Sales tax
= ₹ (1000 + 200)
= ₹ 1200

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