Question

Smith buys an article marked at Rs. $2,200.$ The rate of Sales Tax is $12\%$. He asks the shopkeeper to reduce the price of the article to such an extent that he does not have to pay anything more than Rs. $2,240$ including Sales Tax. Calculate the reduction, as percent, needed in the marked price of the article.

• A. $9\frac{2}{13}$%
• B. $9\frac{1}{11}$%
• C. $7\frac{1}{9}$%
• D. None of these
  

Answer 1

Answer: (B)

$9\frac{1}{11}$%

Let the cost of the article be reduced to Rs. $x$.

According to question,

$Costprice+Salestax=Rs.2240$

$\therefore x+12$% of $x=2,240$

$\Rightarrow x+\frac{12}{100}\times x=2240$

$\Rightarrow \frac{112x}{100}=2240$

$\Rightarrow x=\frac{2240\times 100}{112}$
$\Rightarrow x=2,000$

$\therefore$ Reduced price of the article $=Rs.2,000$
Reduction needed $=Rs.2,200-Rs.2,000=Rs.200$
Hence, reduction as percent of marked-price $=\frac{Reduction}{Markedprice}\times 100$%
$=\frac{200}{2,200}\times 100$% $=9\frac{1}{11}$%