Question

When the rate of sales tax is decreased from $9\%$ to $7\%$ for a radio, Rahul has to pay Rs 632 less for it. What is the listed price of the radio?
[4 MARKS]

Answer 1

Formula: 1 Mark
Steps: 2 Marks
Answer: 1 Mark

Let M.P be Rs x
Total amount paid when sales tax is $9\%=x+9\%ofx$
Total amount paid when sales tax is $7\%=x+7\%ofx$
$\therefore x+\frac{9}{100}x=x+\frac{7}{100}x+632$
$\Rightarrow \frac{109}{100}x=\frac{107}{100}x+632\Rightarrow \frac{2x}{100}=632$
$\Rightarrow x=\frac{632\times 100}{2}=Rs31,600$
$\therefore M.P.=Rs31,600$