Question

A shopkeeper buy an article for Rs. 2,400 from a wholesaler at 20% rebate on its list price. He marks up the list price of the article bought by 10% and then sells it for Rs. 3,498 including sales tax on the marked up price. Find: 

(i) the rate of sales tax

(ii) the shopkeeper’s profit as per cent.

Answer 1

Let the printed price = Rs. y

Discount% = 20%

Cost price = Rs. 2,400

∴ List price – discount = Rs. 2,400

⟹ y − 20% of y = Rs. 2,400