Question

When you buy a car for Rs. 15,000 and pay 10% in tax. How much is sales tax?
a)Rs. 15,000
b)Rs. 20,000
c)Rs. 16,500
d)Rs. 17,000

Answer 1

Hint: To solve the question, we have to apply the formula for the increased value of cost by the given tax percentage. To solve further, substitute the given value in the above formula. Thus, we can calculate the value of the sales tax.

Complete step-by-step answer:
The given cost of the car is equal to Rs. 15,000
The percentage of the cost that should be paid for tax is equal to 10%
We know that, the formula for calculating the amount of sales tax for the Rs. X cost of the car and when the tax percentage is a %, is given by \[X\left( 1+\dfrac{a}{100} \right)\]
On comparing the above information with our given information, we get
The value of X = Rs. 15,000
The value of a = 10%
By substituting the above values in the given formula, we get
\[\begin{align}
  & 15000\left( 1+\dfrac{10}{100} \right) \\
 & =15000\left( 1+\dfrac{1}{10} \right) \\
 & =15000\left( \dfrac{10+1}{10} \right) \\
 & =15000\left( \dfrac{11}{10} \right) \\
 & =1500\times 11 \\
 & =16500 \\
\end{align}\]
Thus, the sales tax for buying a car for Rs. 15,000 and with tax pay of 10%, is equal to Rs. 16, 500
Hence, option (c) is the right choice.

Note: The possibility of mistake can be, not analysing that the required sales tax is equal to the increased value of 15,000 by 10%. The alternative way of solving is by calculating the sum of values of the tax and the cost of the car, where tax cost is 10% of Rs. 15,000. Since, we know that the sales tax value is equal to the sum of the tax and the cost of the car. Thus, we can calculate the value of sales tax.