Question

Find the price, a customer will pay for the bicycle if the Sales Tax is increased by $6\%$

Answer 1

selling price of the bicycle=Rs.1664 (including sales tax)

List price of the bicycle=Rs.1600

$\therefore$ sale tax charged=$1664-1600=Rs.64$

Rate of sales tax$=\frac{sales-tax}{sales-price}\times 100=\frac{64}{1600}\times 100=4$%

According to the question if the rate of sales-tax is increased by 6% then the new rate of sales-tax$=6+4=10$%

$\therefore$ new sale tax=10% of Rs.1600

$=\frac{10}{100}\times 1600=Rs.160$

New selling price of the bicycle$=1600+160=Rs.1760$