Question

 A dealer buys an article at a discount of $30%$ from the wholesaler, the marked price being $Rs.6000$. The dealer sells it to a shopkeeper at a discount of $10%$ on the marked price. If the rate of VAT is $6%$,find the price paid by the shopkeeper (in Rs.) including the tax.

Answer 1

Hint: To find the price paid by the shopkeeper (in Rs.) including the tax, first find the price of the article which the dealer paid to the wholesaler. After that, calculate sales tax paid by the dealer to the wholesaler and then calculate the price of the article which the shopkeeper paid to the dealer. So at last find the price paid by the shopkeeper including tax. Try it, you will get the answer.

Complete step-by-step answer:
Discount is a kind of reduction or deduction in the cost price of a product. It is mostly used in consumer transactions, where people are provided with discounts on various products. The discount rate is given in percentage.
Discount Rate is the price of the total quantity/amount usually less than its original value. We can also say, a total bill is usually sold at a discount. Based on the profit and loss concept, the discount is basically the difference of marked price and selling price.
Marked price is the cost set by the seller as per the market standard and selling price is the price at which the product or commodity has been sold. When the selling price is less than the marked price, then the buyer is said to get some discount on it.
The discount rate is the annualized percentage of the above discount, which is a percentage adjusted, to give an annual percentage.
The reduction in the rate/price of some item/product or service is referred to as Discount rate. It is usually printed on the item by making some modifications in the marked price(Distribution Channel) or by pasting a sticker on the commodity(by making changes in retail prices) or making changes in the list price set for the buyer.
Now we are given a marked price of $Rs.6000$ and a rate of discount is $30\%$ .
Therefore, the price of article which dealer paid to the wholesaler is,
$
 =Rs.6000-30\%\text{ of }6000\\ $
$ =Rs.6000-\dfrac{30\times 6000}{100} \\ $
$ =Rs.\left( 6000-1800 \right) \\ $
$ =Rs.4200 \\$
Now sales tax paid by dealer to the wholesaler is,
$
 =6\%\text{ of 4200} \\$
$ =\dfrac{6\times 4200}{100} \\$
$ =Rs.252 \\ $
Now for shopkeepers the rate of discount is $10\%$.
Now the price of the article which the shopkeeper paid to dealer is,
$
=Rs.6000-10\%\text{ of }6000 \\$
$ =Rs.6000-\dfrac{10\times 6000}{100} \\$
$ =Rs.\left( 6000-600 \right) \\ $
$ =Rs.5400 $
So price paid by the shopkeeper including tax is,
$
 =Rs.5400+6\%\text{ of 5400} \\ $
$ =Rs.5400+\dfrac{6\times 5400}{100} \\$
$ =Rs.\left( 5400+324 \right) \\$
$ =Rs.5724 \\
$
So the price paid by the shopkeeper including tax is $Rs.5724$.
Note: Read the question carefully. Also, take utmost care that no terms are missing. Do not make silly mistakes while solving. While simplifying, take care that you solve it step by step. Do not confuse while solving.Discount refers to the condition of the price of a bond that is lower than the face value. The discount equals the difference between the price paid for and it’s par value.