Question

Tanya buys a sescter less costing Rs. 3,600, the rate of GST being 12%. She asks the shopkeeper to reduce the price of cost to such an extent that she does not have to pay anything more than Rs. 3,366 including GST. Calculate :
(i) the reduction needed in the cost price of the designer dress.
(ii) the reduction as percent.

Answer 1

Step 1: Given information:

Rate of GST$=12\%$

Cost of sescter$=\mathrm{Rs}.3,600$

Final payment Tanya did to purchase sescter including GST=$=\mathrm{Rs}.3,366$

Step 2: Calculate cost price:

Let the cost price for Tanya be $\mathrm{Rs}.x$ excluding GST

$$\begin{gathered} x+12\%\mathrm{of}x=3,366 \\ \Rightarrow x+\frac{12}{100}x=3,366 \\ \Rightarrow x+\frac{3}{25}x=3,366 \\ \Rightarrow \frac{28}{25}x=3,366 \\ \Rightarrow x=3,366\times \frac{25}{28} \\ \Rightarrow x=\mathrm{Rs}.3,005.35 \end{gathered}$$

Step 3: The reduction needed in the cost price of the designer dress :

$$\begin{gathered} \therefore \mathrm{Reduction}=3,600-3,005.35 \\ =\mathrm{Rs}.594.65 \end{gathered}$$

Step 4: Reduction percentage:

$$\begin{gathered} \mathrm{Reduction}\%=\frac{594.65}{3600}\times 100 \\ \mathrm{Reduction}\%=16.5\% \end{gathered}$$

Hence,

(i) The reduction needed in the cost price of the designer dress is Rs. 594.65.

(ii) The reduction is 16.5%