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 purchasing this article.

• A. $Rs.754.20$
• B. $Rs.869.20$
• C. $Rs.946.20$
• D. $Rs.1023.20$

Answer 1

Answer: (B)

$Rs.869.20$

Let the profit of the retailer be $x$

VAT $=$ Rs.$4.80$

Sales tax$=6\%$

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

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

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

Hence Profit of the retailer$=900-80=Rs.820$

Sales tax paid by the retailer$=6\%$ of $820$$=\frac{8}{100}\times 820=Rs.49.20$

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