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Question

Miss Anjali goes to a mall to purchase a saree whose cost is 885 (list price). She tells the shopkeeper to reduce the price in such an extent that she has to pay 885, inclusive GST which is at the rate of 18%, find the reduction of price needed in the saree.


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Solution

Step 1: Find the amount paid by Miss Anjali for a saree.

List price=885

Goods and Services Tax (GST) rate=18%

Let us assume that the reduced price of a saree isx

Amountpaid=Reducedprice+GST%ofReducedprice

∴ Amount Miss Anjali has to pay for a saree=x+18100x

=1+18100x

=1+950x

=50+950x

=59x50

Step 2: Find the reduction done on the list price of a saree.

According to the question, Miss Anjali wants to pay 885 including GST

59x50=885

x=885×5059

x=750

Hence, the reduced price of a saree is750.

Amountreduced=Listprice-Reducedprice

=885-750

=135

Final Answer: The reduction in the price needed for a saree is 135.


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