A shopkeeper allows a discount of 10% on the marked price of an item but charges a sales tax of 8% on the discounted price. If the customer pays Rs. 680.40 as the price including the sales tax, then what is the marked price of the item ?

Let the marked price be $x$. After a 10 percent discount, the price becomes 0.90$x$. An 8 percent sales tax on this discounted price makes the final amount 1.08 multiplied by 0.90$x$, which equals 0.972$x$. Setting 0.972$x$ equal to the final paid amount of Rs. 680.40 gives $x$ = 680.40 divided by 0.972. Solving this yields a marked price of Rs. 700.

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