Question

The price of an article is Rs 8,250 which includes sales tax at 10%. Find how much more or less does a customer pay for the article, if the sales tax on the article:

(i) increases to 15%
(ii) decreases to 6%
(iii) increases by 2%
(iv) decreases by 3%

Answer 1

Let sale price of article = Rs y

Total price inclusive of sales tax = Rs 8,250

The rate of sales tax = 10%

According to question

y + 10% of y = Rs 8250

`=> "y" +  "y"/10 = "Rs." 8250`

`=> (11"y")/10 = "Rs." 8250`

`=> "y" = (8250 xx 10)/11 = "Rs." 7500`

(i) New rate of sales tax = 15%

New total price = Rs. 7,500 + 15% of Rs. 7,500

`= "Rs." 7500 +15/100 xx 7500`

= Rs. 7500 + Rs. 1125 = Rs. 8625

More money paid  = Rs. 8,625 – Rs. 8,250 = Rs. 375

(ii) New rate of sales tax = 6%

New total price = Rs. 7,500 + 6% of Rs. 7,500

`= "Rs." 7500 + 6/100 xx 7500`

= Rs. 7500 + Rs. 450 = Rs. 7950

Less money paid = Rs. 8,250 – Rs. 7,950 = Rs. 300

(iii)  New rate of sales tax = (10+2)% = 12%

New total price = Rs. 7,500 + 12% of Rs. 7,500

`= "Rs." 7500 + 12/100 xx 7500`

= Rs. 7500 + Rs. 900 = Rs. 8400

More money paid = Rs. 8,400 – Rs. 8,250 = Rs. 150

(iv) New rate of sales tax =(10-3)%= 7%

New total price = Rs. 7,500+ 7% of Rs. 7,500

`= "Rs." 7500 + 7/100  xx 7500`

= Rs. 7500  + Rs. 525 = Rs. 8025

Less money paid = Rs. 8,250 – Rs. 8,025 = Rs. 225