Question

Harry goes to a shop to buy a watch costing Rs. 1404, including sales tax of 8$\%$. He asks the shopkeeper to reduce the price of the watch so that he can save an amount equal to the sales tax. The reduction in the price of the watch is _____ .

• A. $Rs.108$
• B. $Rs.104$
• C. $Rs.112.32$
• D. $\text{None of these}$

Answer 1

Answer: (B)

$Rs.104$

Let the original cost of the watch be $Rs.x$.
Given that, after a sales tax of $8\%$, the price of the watch is $Rs.1404$

$\therefore x+\frac{8}{100}\times x=1404$

$\Rightarrow \frac{108}{100}\times x=1404$

$\Rightarrow x=\frac{1404}{1.08}=1300$

Hence, the sales tax on the watch is $=1404-1300=Rs.104$.

Harry saves an amount equal to the sales tax.

Thus, Harry saves $Rs.104$.