Question

A blazer marked at RS. 1,600 is billed at Rs. 1,696. Find the rate of sales tax.

Answer 1

Hint – In this question use the concept that the sales tax will be the difference of the marked price and the billing price. Both the values are given so simple substitution of values in the mentioned concept will give sales tax. The rate of sales tax will be the ratio of sales tax to marked price multiplied with 100.

Complete step-by-step answer:
Marked price or market price of blazer = Rs. 1600.
And billing price = Rs. 1696.
So sales tax is the difference of billing price and marked price.
Therefore sales tax (S.T) = billing price – marked price.
$ \Rightarrow S.T = 1696 - 1600$ Rs. 96.
So the rate of sales tax is the ratio of sales tax to marked price multiplied by 100.
Therefore rate of sales tax = $\dfrac{{S.T}}{{{\text{marked price}}}} \times 100$
                                                = \[\dfrac{{96}}{{1600}} \times 100\]
                                                 = \[\dfrac{{96}}{{16}} = 6\] %.
So the rate of sales tax is 6 %.
So this is the required answer.

Note – Sales tax is a consumption tax imposed by the government on the sale of goods and services. Marked price is the price on the label of an article, it is also termed as M.R.P. This is the price at which the product is intended to be sold. Billing price is the price that is being paid by the buyer to the seller. Sometimes it is different from M.R.P due to reasons of discount etc.