Question

The rate of Sales Tax

• A. 8%
• B. 10%
• C. 12%
• D. 14%

Answer 1

Answer: (C)

12%

Let the M.P =Rs.x

C.P=Rs.1700

$\therefore x-15\%ofx=1700$

$\Rightarrow x-\frac{15}{100}x=1700$

$\Rightarrow \frac{85x}{100}=1700$

$\Rightarrow 85x=170000$

$\Rightarrow x=\frac{170000}{85}=Rs.2000$

If he raised the printed price of the article=20%

$\therefore$ S.P of the article $=2000+\frac{20}{100}\times 2000$

$\Rightarrow 2000+400=Rs.2400$

S.P of the article including the tax=Rs.2688

Let the rate of sales tax=y%

Then $2400+y\%of2400=2688$

$\Rightarrow \frac{y}{100}\times 2400=2688-2400$

$\Rightarrow 24y=288$

$\Rightarrow y=\frac{288}{24}=12$%