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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.

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Solution

The correct option is **A** Rs.869.20

Let the profit of the retailer be x

Let the profit of the retailer be x

VAT = Rs.4.80

Sales tax=6%

∴ 6% of x=4.80

⇒6100x=4.80

⇒x=4806=80

Hence Profit of the retailer=900−80=Rs.820

Sales tax paid by the retailer=6% of 820=8100×820=Rs.49.20

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

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