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A Bicycle is Available for Rs 1,664 Including Sales Tax. If the List Price of the Bicycle is Rs 1,600, Find : (1) the Rate of Sales Tax. (2) the Price, a Customer Will Pay for the Bicycle If the Sales - Mathematics

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ConceptIntroduction to Sales Tax and Value Added Tax

Question

A bicycle is available for Rs 1,664 including sales tax. If the list price of the bicycle is Rs 1,600, find :

(1) the rate of sales tax.

(2) the price, a customer will pay for the bicycle if the sales tax is increased by 6%.

Solution

Price of bicycle inclusive of sales tax = Rs 1,664

List price of bicycle = Rs 1,600

`∴ "Rate of sales tax" = "sales tax"/"list price" xx 100% = 64/1600 xx 100% = 4%`

2) New rate of sales tax =(4+6)% = 10%

New total price = Rs 1,600+ 10% of Rs 1,600

`= Rs 1600 + 10/100 xx 1600`

= Rs 1600 + Rs 160

= Rs 1760

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Solution A Bicycle is Available for Rs 1,664 Including Sales Tax. If the List Price of the Bicycle is Rs 1,600, Find : (1) the Rate of Sales Tax. (2) the Price, a Customer Will Pay for the Bicycle If the Sales Concept: Introduction to Sales Tax and Value Added Tax.
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