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A retailer buys an article at a discount of 15% on the printed price from a wholesaler. He marks up the price by 10%. Due to competition in the market, he allows a discount of 5% to a buyer. - Mathematics

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Sum

A retailer buys an article at a discount of 15% on the printed price from a wholesaler. He marks up the price by 10%. Due to competition in the market, he allows a discount of 5% to a buyer. If the buyer pays ₹451.44 for the article inclusive of sales tax (under VAT) at 8%, find :
(i) the printed price of the article
(ii) the profit percentage of the retailer.

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Solution

(i) Let the printed price of the article = ₹100
Then, retailer’s cost price
= ₹100-₹15 = ₹85
Now, marked price for the retailer
= ₹100 + ₹10 = ₹110
Rate of discount allowed = 5%
∴ Sale price

= `₹(110 xx (100 - 5))/(100)`

= `₹(110 xx 95)/(100)`

= `₹(1045)/(10)`
∴ Sale price including sales tax

= `₹(1045)/(10) xx (100 + 8)/(100)`

= `₹(1045 xx 108)/(1000)`

Now, if the buyers pays `₹(1045 xx 108)/(1000)`

then printed price = ₹100
and if buyer pays ₹451.44, then printed price

= `₹(100 xx 451.44 xx 1000)/(1045 xx 105)`

= `(100 xx 45144 xx 1000)/(100 xx 1045 xx 108)`
= ₹400
∴ Printed price = ₹400
(ii) Now, gain of the retailer 
= S.P. - C.P.

= `₹(1045)/(10) - (85)/(1)`

= `(1045 - 850)/(10)`

= `₹(195)/(10)`
∴ Gain percent

= `("Total gain" xx 100)/"C.P."`

= `(195 xx 100)/(10 xx 85)`

= `(390)/(17)`

= `22(16)/(17)%`.

Concept: Computation of Tax
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APPEARS IN

ML Aggarwal Understanding ICSE Mathematics Class 10 Solved
Chapter 1 Value Added Tax
Chapter Test | Q 6

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