#### Question

Q

#### Solution

(i) Let the cost price of an article (excluding tax) to the first dealer br Rs. x.

Now, C.P. of an article to a dealer including tax (8%) = Rs. 40500

⇒ x + 8% × x = 40500

⇒ `108/100` x = 40500

⇒ x = 37500

Thus, the cpst of an article to the first dealer is Rs. 37500

(ii) Now, tax received by Government

= 8% of Rs. (42500 - 3000)

= 8% of Rs. 45500

= `8/100` × Rs. 45500

= Rs. 3640

(iii) The amount that a customer pays for the article

= Rs. (42500 + 3000 + 3640)

= Rs. 49140

Is there an error in this question or solution?

Solution Q Concept: Computation of Tax.