Question

The price of a washing machine, inclusive of Tax, is Rs. 13,530/-. If the tax is 10%, find its basic (cost) price.

Answer 1

Selling price of washing machine = Rs. 13,530.
Rate of Sales Tax = 10%
$\therefore$ Cost price = $\frac{\text{Selling Price}\times 100}{(100+\text{Rate of Sales Tax)}}$
= $\frac{13530\times 100}{100+10}$
= $\frac{13530\times 100}{110}=Rs.12,300$