Multiple choice general knowledge math & puzzles

The sale price of an article including the sales tax is Rs.616.The rate of sales tax is 10%.If the shopkeeper has made a profit of 12% ,then the cost price of the article is ?

  1. Rs.500

  2. Rs.516

  3. Rs.550

  4. Rs.600
Reveal answer Fill a bubble to check yourself
A Correct answer
Explanation

Let selling price be 616. Sales tax is 10%, so price before tax = 616/1.1 = 560. This includes 12% profit, so cost price = 560/1.12 = 500. Option A (Rs.500) is correct. This tests understanding that sales tax is calculated on selling price, while profit is calculated on cost price.

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