Question

A trader Meerut buys an article for \[Rs.3,600\] (inclusive of all taxes) from Kanpur. He spends $Rs.1,200$ on travelling, transportation of articles, etc. If he desires a profit of $15\%$ , how much will a customer pay for the article? The rate of Sales Tax paid by the customer is \[8\%\] .
A. \[Rs.5,761.60\]
B. \[Rs.5,861.60\]
C. \[Rs.5,961.60\]
D. \[Rs.6,061.60\]

Answer 1

Hint: To find the amount that the customer has to pay for the article, we will use the formula $SP=\left( \dfrac{100+Gain\%}{100} \right)CP$ . CP can be found by adding the price paid on the article by the trader and the travelling cost. Substituting this and the given profit data in the formula , we will get the selling price. The \[\text{Money paid by the customer}=\text{Sale price of the article + Sales Tax on it}\] . The rate of sales tax is given from which we will get the sales tax, that is, $\text{Sales tax}=8\%\text{ of }SP$. Substituting the values we will get the price paid by the customer.

Complete step by step answer:
We need to find the amount that the customer has to pay for the article.
It is given that the price paid by the trader for the article \[=Rs.3,600\] .
It is also given that the transportation charge $=Rs.1,200$ .
In order to find the total cost price of the article, let us add the price paid on the article and the travelling price.
Hence, $CP=Rs.3,600+Rs.1,200=Rs.4,800$
We know that selling price, $SP=\left( \dfrac{100+Gain\%}{100} \right)CP$
It is given that the profit $=15\%$
Substituting the values, we will get
$SP=\left( \dfrac{100+15\%}{100} \right)\times 4,800$
$SP=\left( \dfrac{100+15}{100} \right)\times 4,800$
$=\left( \dfrac{115}{100} \right)\times 4,800$
Now, cancelling the zeroes from numerator and denominator, we will get
$SP=115\times 48=Rs.5,520$
\[\text{Money paid by the customer}=\text{Sale price of the article + Sales Tax on it}...\text{(}i)\]
It is given that rate of Sales Tax paid by the customer \[=8\%\] .
$\text{Sales tax}=8\%\text{ of }SP$
$\Rightarrow \text{Sales tax}=\dfrac{8}{100}\times 5520$
When we solve this, we will get
$\text{Sales tax}=\dfrac{8}{5}\times 276$
Solving this further, we will get
$\text{Sales tax}=Rs.441.6$

Let us substitute this in $(i)$ . We will get
\[\text{Money paid by the customer}=\text{5520+ }441.6\]
Let us now add this. So we will get
\[\text{Money paid by the customer}=Rs.5,961.60\]

So, the correct answer is “Option C”.

Note:
Be careful when substituting the values in the equation $SP=\left( \dfrac{100+Gain\%}{100} \right)CP$ . The gain must be substituted in percentage and should not be converted into the fractional form. If the question specifies the loss instead of profit, we will be using the formula $SP=\left( \dfrac{100-Loss\%}{100} \right)CP$ . Also, in the question, the rate of sales tax is given. One must find the sales tax in Rupees before substituting in the equation $(i)$ .