Question

An increase of 4% on the sales tax of an article led to an increase of Rs 480 on the selling price of the article. Find the marked price of the article.

Answer 1

The increase in price of the article is only because of increase in amount of sales tax. 

Let marked price be x 

And increase in amount of sales tax is 

=(Increase in rate of sales tax) x Price/100 

This amount is given as Rs.480. 

Also it is given 

Increase in rate of sales tax = 4 % 

Therefore: 

Rs 480 = `x xx 4/100`

Rs 480 = `(4 x)/100`

x = Rs 480 x 25 = Rs12, 000 

Thus marked price of the article is Rs. 12,000