Question

The selling price of an article is ₹ 9720 inclusive of sales tax. If the rate of sales tax is 8% , find the amount of sales tax

• A. ₹ 9720
• B. ₹ 9000
• C. ₹ 720
• D. ₹ 800

Answer 1

The correct option is C

₹ 720

Final Price of an article = ₹ 9720

Sales Tax = 8%

Let the price of the article exclusive of sales tax be x

Hence 9720 = $x$ + 8 % of $x$

= $x$ $\times$ ( 1 + $\frac{8}{100}$)

=$\frac{108x}{100}$

$x$ = ₹ 9000

Given that Final price of the article = ₹ 9720 ( inclusive of sales tax )

Amount paid as tax = 9720- 9000

= ₹ 720