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Question

Ms. Chawla goes to a shop to buy a leather coat which costs Rs 735.The rate of sales tax is 5%. She tells the shopkeeper to reduce the price of the coat, such that she has to pay only Rs 735 inclusive of sales tax. Find the reduction needed in the price of the coat?

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Solution

Let changed marked price be Rs x
Then 735 = x + 5% of x
735=x+5x100
735=105100x
x=735×100105
x=700
reduction needed = Rs 735 - Rs 700 = Rs 35

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