Question
Cost price of an item is ₹ 1000. If the sales tax charged is 20% of cost price, then the bill to be paid is
Cost price of an item is ₹ 1000. If the sales tax charged is 20% of cost price, then the bill to be paid is
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Solution
The correct option is B ₹1200
Sales tax charged = 20% of cost price
= 20% of 1000
= 20100×1000
= ₹ 200
∴ Total amount to be paid
= cost price + Sales tax
= ₹ (1000 + 200)
= ₹ 1200
Sales tax charged = 20% of cost price
= 20% of 1000
= 20100×1000
= ₹ 200
∴ Total amount to be paid
= cost price + Sales tax
= ₹ (1000 + 200)
= ₹ 1200
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