Question

Laxman went to a shop to buy a fan costing Rs 750. The rate of sales tax is 6%. He requests the shopkeeper to reduce the price to such an extent that he has to pay only Rs 742 including the sales tax. Find the reduction needed in the price of the fan.

Answer 1

Let the reduced price be x 

Rate of sales tax = 6%

Therefore, total amount of the fan 

= x + 6 % of x = `1 + 6/100 xx (106 "x")/100`

But the total amount of the fan to be paid = Rs 742 

Therefore, reduced price = 

⇒ `(106 "x")/100` = Rs 742

⇒ x = Rs `74200/106` 

⇒ x = Rs 700

Reduction needed =Rs (750 - 700) = Rs 50