Question

A trader from Meerut buys an article for Rs. 3,600 (inclusive of all taxes) from Kanpur. He spends Rs. 1,200 on travelling, transportation of the article, etc. If he desires a profit of 15$\%$, how much will a customer pay for the article? The rate of Sales Tax paid by the customer is 8$\%$.

• A. Rs. $5,761.60$
• B. Rs. $5,861.60$
• C. Rs. $6,061.60$
• D. Rs. $5,961.60$

Answer 1

Answer: (D)

Given that,
Price paid for the article $=Rs.3,600$
Transportation charge $=Rs.1,200$

$\therefore$ Total Cost price of the article $=Rs.3,600+Rs.1,200$

$=Rs.4,800$

Also, profit percent $=15\%$

We know that, $S.P.=\frac{100+profit\%}{100}\times C.P.$

Hence, selling price $=\left(\frac{100+15}{100}\right)\times 4,800$

$=\frac{115}{100}\times 4,800$

$=Rs.5,520$

There is also a sales tax of $8\%$ on the article.

$\therefore$ Money paid by the customer $=$ Selling price of the article $+$ Sales tax on it

$\Rightarrow 5,520+8\%of5,520$

$\Rightarrow 5520+\frac{8}{100}\times 5520$

$\Rightarrow 5520+441.60$

$=Rs.5,961.60$

Hence, a customer will pay $Rs.5,961.60$ for the article.