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Question
The buying price of 5 kg of flour with the rate Rs 20 per kg, when 5% ST is added on the purchase is Rs 21.
Options
True
False
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Solution
This statement is True.
Explanation:
Total flour bought = 5 kg
Rate of one kg flour = Rs. 20
Cost of 5 kg flour with 5% sales tax
= `5 xx 20 + 5/100 xx (5 xx 20)`
= `100 + 5/100 xx 100`
= 100 + 5
= Rs. 105
Per kg flour rate after 5% sales tax = `105/5` = Rs. 21
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