Question

The marked price of an article is Rs. $900$ and the rate of sales-tax on it is $6\%$. If on selling the article at its marked price, a retailer has to pay VAT= Rs. $4.80$. find the money paid by him (including sales-tax) for purching this article.

• A. $Rs.912.20$
• B. $Rs.890.20$
• C. $Rs.869.20$
• D. $Rs.860.20$

Answer 1

The correct option is C $Rs.869.20$

Let the profit of the retailer be Rs.$x$

VAT paid by the shopkeeper is Rs.$4.80$ at the rate of sales tax $6\%$

$\therefore$ $6\%$ of $x=4.80$

$\Rightarrow \frac{6}{100}x=4.80$

$\Rightarrow x=\frac{4.80\times 100}{6}=Rs.80$

$\therefore$ cost price to the retailer $=900-80$

$=Rs.820$

Sales tax paid by the retailer $=6\%$ of $820$

$\Rightarrow \frac{6}{100}\times 820=Rs.49.20$

$\therefore$Price of the article including sales tax paid by the retailer$=820+49.20=Rs.869.20$