Question

A shopkeeper buys on article whose list price is Rs. 450 at some rate of discount from a wholesaler. He sells the article to a consumer at the list price and charges sales tax at the rate of 6%. If the shopkeeper has to pay a VAT of Rs. 2.70, find the rate of discount at which he bought the article from the wholesaler.

Answer 1

Let the amount of discount be ₹  x.

As the shopkeeper sells the article at the the list price, the profit of the shopkeeper = ₹  x.

:. The value of the the article added by the shopkeeper = ₹ x.