Question

A dining table is purchased for Rs3200 and sold at a gain of 6%. If a customer pays sales tax at the rate of 5%, how much does the customer pay in all for the table?

Answer 1

Hint: The price in which the product is bought by the seller is known as the cost price of the product, and the price in which the seller sells the product to the consumer is known as the selling of the product for the seller. If the selling price of the product is greater than the cost price of the product, then the difference in the prices can be termed as the profit or the gain on the product while at the same time if the selling price is less than the cost price of the product, then the difference in the price is known as the loss on the product. Profit percent or loss percent of a product is always calculated on the cost price of the product.

Complete step-by-step answer:
Sales tax is the amount that a customer pays to the government while purchasing, which is always added to the selling price.
In this question, the cost price is given, and it is said that the customer gained a profit of 6% on the dining table by using the profit percentage formula to find the selling price on the table and then add the sales tax of 5% on the selling price to find the total price the customer paid.
The cost price of the dining table \[CP = Rs3200\]
Since the customer has gained a profit of 6%, hence by using the profit percent formula, find the selling price

\[
  P\% = \dfrac{{SP - CP}}{{CP}} \times 100 \\
  \dfrac{6}{{100}} = \dfrac{{SP}}{{CP}} - 1 \\
  \dfrac{{SP}}{{CP}} = 0.06 + 1 \\
  SP = 1.06 \times 3200 \\
  SP = Rs.3392 \\
 \]
As sales tax is paid on the total selling price, hence we can write
The total cost of the table\[ = 3392 + \dfrac{5}{{100}} \times 3392 = Rs.3561.60\]
Hence the total amount the customer has to pay\[ = Rs.3561.60\]

Note: It is to be noted here that the sales tax is always paid on the final selling price, i.e., the selling price is not inclusive of the tax amount. Sales tax depends on the type of product.