Question

Rajeev buys goods worth Rs.6650. He gets a rebate of 6% on it. After getting the rebate he pays sales tax @ 10%. Find the amount that he will have to pay for the goods?
A. 6876.10
B. 6999.20
C. 6654
D. 7000

Answer 1

Hint: From the given details we get the marked price to be 6650 and as he gets a rebate of 6% we need to find the rebate amount and subtract it from the marked price and now we get a new price and now we need find the sales tax which is 10% of this new price and adding it to the new price we get the required selling price.

Step by step solution :
Now we are given that the goods are worth Rs.6650
So the marked price = 6650
He gets a rebate of 6% on it
Rebate is nothing other than discount
Rebate amount = rebate % of marked price
$
   \Rightarrow Rebate{\text{ }}amount = \dfrac{6}{{100}}\times 6650 \\
   \Rightarrow Rebate{\text{ }}amount = 6\times 66.5 = 399 \\
 $
Hence he gets a rebate of Rs.399
Now the price after deducting the rebate is
$ \Rightarrow 6650 - 399 = 6251$
Now he needs to pay a sales tax of 10%
Now the price of the goods is 6251
So the sales tax is given by 10% of 6251
$
   \Rightarrow sales{\text{ }}tax = \dfrac{{10}}{{100}}\times 6251 \\
   \Rightarrow sales{\text{ }}tax = \dfrac{{6251}}{{10}} = 625.1 \\
 $
Now we need to add the sales tax in order to get the selling price
$ \Rightarrow SP = 6251 + 625.1 = 6876.1$
Hence Rajeev pays Rs.6876.1 to buy the goods

Thus the correct answer is option A.

Note :
1) rebate is a form of buying discount and is an amount paid by way of reduction, return, or refund that is paid retrospectively.
2) The price on the label of an article /product is called the marked price.This is the price at which product is intended to be sold.
3) We can see that when a discount is offered ,then marked price > selling price and when discount is not offered ,then marked price < selling price.
4) Discount is a reduction given on market price.
5) Discount=Marked price – Selling price
6) Discount can be calculated when a discount percentage is given.