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Question

The price of an article is Rs. 8250 which includes Sales Tax at 10%. Find how much more or less does a customer pay for the article, if the sales tax on the article is 15 %.

A
increases to 15%
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B
decreases to 6%
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C
increases by 2%
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D
decreases by 3%
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Solution

The correct option is C increases by 2%

Let the price of article is Rs x
According to question:
x+x×10100=8250
x+x10=8250
10x+x=82500
11x=82500
x=Rs 7500
Thus, the price of article = Rs 7500
(1) If sale tax on article is 15%
Then, Sale tax
=Rs(7500×15100)=Rs 1125
Customer has to pay Rs (7500 + 1125) i.e., Rs (8625) for the article.
Hence, the more amount customer has to pay is Rs (8625-8250) i.e., Rs 375
(2) If sale tax on article is 6%
Then, customer has to pay Rs (7500×6×7500100)
i.e., Rs 7950
The less amount customer has to pay is Rs (8250 - 7950) i.e., Rs (300).


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