Question

Kiran purchases an article for ₹ 5, 400 which includes a 10% rebate on the marked price and 20% sales tax (under VAT) on the remaining price. Find the marked price of the article.

Answer 1

Let the market price of the article be ₹ x
Then, rebate
= 10% of ₹ x

= ₹ `x/(10)`
Price after rebate

= `₹(x - x/10)`

= ₹`(9x)/(10)`
Sales tax

= 20% of ₹`(9x)/10`

= ₹`(9x)/(10) xx (20)/(100)`

= ₹`(9x)/(50)`
∴ SP of the article

= ₹`((9x)/10 + (9x)/50)`

= `(45x + 9x)/(50)`

= ₹`(54x)/(50)`

= ₹`(27x)/(25)`
But SP = ₹5400        ...  (given)

∴ `(27x)/(25) = ₹5400`

⇒ x = `(5400 xx 25)/(27)`

= 200 xx 25
= ₹5000
Hence, market price of the article is ₹ 5000.