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 Rs $4.80$ ; find the money paid by him (including sales tax) for purchasing the article.

• A. $700.40$
• B. $800.20$
• C. $829.20$
• D. $869.20$

Answer 1

The correct option is D $869.20$

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

As the VAT paid by the shopkeeper is Rs. $4.80$ and rate of sales tax is $6\%$, then $6\%$ of $x$ $=4.80$.

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

$\Rightarrow x=\frac{480}{6}=80$

Now, profit of the retailer $=900-80=$ Rs. $820$

Sales tax paid by the retailer $=6\%$ of Rs. $820=\frac{6}{100}\times 820=$ Rs.$49.20$.

So, price of the article including sales tax paid by the retailer $=820+49.20=$ Rs. $869.20$.

Therefore, the money paid for purchasing the article is Rs. $869.20$.