Question

The cost of an article including the sales tax is $Rs.616$. The rate of sales tax is $10\%$,if the shopkeeper has made a profit of $12\%$ , then the cost price of the article is?

• A. $Rs.350$
• B. $Rs.400$
• C. $Rs.500$
• D. $Rs.800$

Answer 1

The correct option is C $Rs.500$

Let the cost price $=Rs100$

Then, including tax $=100+\frac{11}{100}=110\%$

So,

$110\%$ of S.P $=Rs616$

Then,

$S.P=\frac{616}{110}\times 100$

$S.P=Rs560$

Now, Cost price of $12\%$ $=\frac{100\times 560}{100+12}=\frac{100\times 560}{112}$

$=Rs500$

Hence, this is the answer.