Question

Ms. Rana goes for shopping to buy a leather coat which costs ₹ 735. The rate of sales tax is 5%. She tells the shopkeeper to reduce the price to such an extent that she has to pay ₹ 735, inclusive of sales tax. Find the reduction needed at the price of the coat.

• A. Rs. 35
• B. Rs. 70
• C. Rs. 45
• D. Rs 700

Answer 1

The correct option is A

Rs. 35

Let the reduced price of the coat be ₹ x

Sales tax = $5\%$ of x = $\left(\frac{5}{100}\right)\times ₹x=₹\frac{x}{20}$

Amount paid by Ms. Rana = ₹ (x + $\frac{x}{20})=₹\frac{21x}{20}$

$\frac{21x}{20}=735$ $\left(given\right)$

$x=\left(\frac{20}{21}\right)\times 735=700$

Reduced price of the coat = ₹ 700

Hence, reduction needed = ₹ 735 - ₹ 700 = ₹ 35.