Question

A shopkeeper buys on article whose list price is Rs. 450 at some rate of discount from a wholesaler. He sells the article to a consumer at the list price and charges sales tax at the rate of 6%. If the shopkeeper has to pay a VAT of Rs. 2.70, find the rate of discount at which he bought the article from the wholesaler.

Answer 1

Let the amount of discount be ₹ x.
As the Shopkeeper sells the article at the list price, the profit of the shopkeeper = ₹ x.
∴ The value of the article added by the shopkeeper = ₹ x.
⇒ 6% of ₹ x = ₹ 2·70

⇒ `(6)/(100) xx x` = 2·70

⇒ 6x = 270
⇒ x = 45.

∴ The amount of discount = ₹ 45

∴ Rate of discount = `(45/450 xx 100)`% = 10 %.