Question

A shopkeeper sells an article for Rs. 21384 including 10% sales tax. However, the actual rate of sales tax is 8%. Find the extra profit made by the dealer.

Answer 1

Price of the article inclusive of sales tax = Rs. 21,384
Let y be the list price of the article
Rate of sales tax charged by the shopkeeper = 10%
According to the given statement, we have
 `y + (y × 10/100) = 21384`
⇒ `y+y/10=21384`
⇒ `(11y)/10=21384`
⇒ `y=(21384xx10)/11`
⇒ `y = Rs. 19440`

When the sales tax is 8%, the actual sale price
= `19440 + 19440 xx8/100`

= 19440+1555.2 = Rs. 20,995.2
Extra profit = Sale price of the article charged by shopkeeper − Actual sale price
⇒ Extra profit = Rs. 21,384 - Rs. 20.995.2 = Rs. 388.80