Question

Kiran purchases an article for ₹ 5400 which includes 10 % rebate on the marked price and 20 % sales tax on the remaining price. Find the marked price of the article .

• A. ₹ 4500
• B. ₹ 5000
• C. ₹ 5500
• D. ₹ 4800

Answer 1

The correct option is B

₹ 5000

Let the marked price of the article be $x$, discount = 10 %

$\therefore$ Amount of discount = ₹ $x$ $\times$ $\frac{10}{100}$
$\therefore$ Cost of the article after discount = ₹ ( $x$ - $\frac{10x}{100}$) = $\frac{9x}{10}$

Since the sales tax is 10 % on reduced price

Amount of sales tax = ₹ $\frac{9x}{10}$ $\times$ $\frac{20}{100}$
= $\frac{9x}{50}$

$\therefore$ Net amount to be paid = ₹ $\frac{9x}{10}$ + $\frac{18x}{50}$

Given that the amount paid = ₹ 5400

$\therefore$ ₹ $\frac{9x}{10}$ + $\frac{18x}{50}$ = 5400
$x$ = $\frac{5400\times 50}{54}$
$x$ = ₹ 5000