Question

Smith buys an article marked at Rs. $2,200$. The rate of Sales Tax is $12\%$. He asks the shopkeeper to reduce the price of the article to such an extent that he does not have to pay anything more than Rs. $2,240$including Sales Tax. Calculate the reduction, as percent, needed in the marked price of the article.

• A. $7\frac{1}{7}$%
• B. $9\frac{1}{11}$%
• C. $11\frac{1}{13}$%
• D. $13\frac{1}{17}$%

Answer 1

Answer: (B)

Let the cost of the article be reduced to Rs. $x$.
$\therefore x+12$% of $x=2,240$
On solving, we get : $x=2,000$
$\Rightarrow$ Reduced price of the article $=Rs.2,000$
Reduction needed $=Rs.2,200-Rs.2,000=Rs.200$
Hence, reduction as percent of marked-price $=\frac{Reduction}{Markedprice}\times 100$%
$=\frac{200}{2,200}\times 100$% $=9\frac{1}{11}$%