Question

The printed price of any article is Rs. 500. The rate of CST is 2%, then find the actual selling price if a discount is not given.

Answer 1

Hint: We know that the printed price also called Marked Price/Listed Price of a product is the price which is written on the label of the product, hence “the marked price” since the Central Sales Tax is applied on the marked price of the article (all we have to do is to include or add 2% off the marked price (MP) to the actual market price of the article to find selling price).

Complete step-by-step solution:
We have been given that marked price/listed price/printed price or print price of an article is
\[MP=500\]; Marked Price is in Rupees
Sales tax paid to the government for the sales of certain goods and services. Usually, the seller is allowed by the government to collect the funds for the tax from the customers as a certain percentage of market price at the time of purchase.
Also, we are given that the Central sales tax (CST) on the particular article is 2%.
Now it is known to us that sales tax is always calculated on the MP of the article so we find sales tax as
\[ST=2%of500\]
\[ST=\dfrac{2}{100}\times 500\]
\[ST=10 \Rightarrow \] Sales Tax is in Rupees
This Rs. 10 will be charged by the vendor on the listed price of the article before selling it to the customer so the customer has to pay an amount equal to MP to the selling price (SP)
\[SP=MP+ST\]
\[SP=500+10\]
\[SP=510 \Rightarrow \] Selling Price is in Rupees
Hence, the selling price which the customer has to pay is Rs. 510.

Note: The student must be aware of the terms Marked Price, Selling Price, Sales Tax. In addition to knowing the terms, the student must also understand its real-world importance. Some of the common mistakes committed by students include writing the numbers wrong, failing to write the name of the currency in which the money is calculated.