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Question

The cost of a tape-recorder is 10,800 inclusive of sales tax charged at 8%. The price of the tape-recorder before sales tax was charged is _____.


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Solution

The cost of a tape recorder is 10,800 inclusive of the sales tax charged at 8%. The price of the tape-recorder before the sales tax was charged is 10,000

Given:

Cost of tape recorder =10800

Say, the cost before including the tax=x

As per the question,

x+x×8100=10800100x+8x100=10800108x=10800×100108x=1080000x=1080000108x=10,000

Therefore, the price of the tape recorder before sales tax is charged is 10000


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