Question

Reena goes to purchase a motorcycle which is priced at Rs 35, 640 including $10\%$ as sales tax. However, the actual rate of sales tax at the time of purchase is $7\%$. Find the extra profit made by the shopkeeper if he still charges the original listed price.
[4 MARKS]

Answer 1

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

Let M.P. be Rs x
then, $35640=x+10\%ofx$
$\Rightarrow$ $35640=\frac{11}{10}x$
$\Rightarrow$ x = Rs 32, 400
Now, amount to be paid = Rs 32400 + $7\%$ of Rs 32400
= Rs 32400 + Rs 2268 = Rs 34,668
Profit made by the shopkeeper = Rs (35640 - 34668) = Rs 972