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Question

When you buy a car for 15,000 rupees and pay 10% in tax. How much is sales tax?

A
Rs. 15,000
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B
Rs. 20,000
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C
Rs. 16,500
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D
Rs. 17,000
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Solution

The correct option is C Rs. 16,500
Given:
Person buys car for Rs. 15,000
Pays tax of 10 %
Sales tax is calculated on the buying cost.
Total tax = 15000×(10100)
= Rs .1500
Total Sales Tax = cost + Tax
= 15000+1500
= Rs .16,500
Thus, the sales tax is Rs. 16,500.

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