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Question
A dining table is purchased for Rs 3,200 and sold at a gain of 6%. If a customer pays sales tax at the rate of 5%. How much does the customer pay in all for the table?
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Solution
Given that, cost price of dining table = Rs. 3,200 and gain on selling = 6% and tax rate = 5%.
We know, Gain = Selling price – Cost price
⇒ Selling price = Gain + Cost price
= `6/100 xx 800 + 800`
= 3200 + 192
= Rs. 3392
Now, If a customer pays sales tax at the rate of 5, then – Selling price after tax
= Selling price after tax + `5/100` × Selling price before tax
= `3392 + 5/100 xx 3392`
= Rs. 3392 + 169.6
= Rs. 3561.6
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