Question

If the rate of sales tax is $5\%$, Simran has to pay $Rs7,140$ for the steel cupboard. What amount she has to pay if the sales tax is increased by $2\%$
[4 MARKS]

Answer 1

Formula: 1 Mark
Steps: 2 Marks
Answer: 1 Mark

Let marked price of the cupboard be Rs x
sales tax $=5\%$
Amount paid by Simran at $5\%$ of sales tax Rs = Rs 7140
Now, M.P. + S.T. = 7140
$\therefore x+5\%ofx=7140$
$\Rightarrow x+\frac{5}{100}x=7140orx+\frac{1}{20}x=7140$
$\Rightarrow \frac{21}{20}x=7140\Rightarrow x=\frac{7140\times 20}{21}$
$\Rightarrow x=Rs6800$
$\therefore$ Marked price of the cupboard = Rs 6,800
Changed sales tax $=5\%+2\%=7\%$
Total amount to be paid by Simran $=Rs6800+7\%ofRs6800$
$=Rs6800+Rs\frac{7}{100}\times 6800$
= Rs 6800 + Rs 476 = Rs 7,276