Multiple choice

A trader buys an article for Rs. 1,700 at a discount of 15% on its printed price. He raises the printed price of the article by 20% and then sells it for Rs. 2,688 including sales tax on the new marked price. Find: (i) the rate of sales tax (ii) the trader's profit as per cent.

  1. (i) $10$%      (ii) $36 \displaystyle\frac{1}{11}$%
  2. (i) $12$%      (ii) $41 \displaystyle\frac{3}{17}$%
  3. (i) $14$%      (ii) $47 \displaystyle\frac{5}{19}$%
  4. (i) $16$%      (ii) $53 \displaystyle\frac{7}{12}$%
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B Correct answer
AI explanation

The original printed price is 1700 / 0.85 = 2000 rupees. The trader raises this by 20 percent, making the new printed price 2000 * 1.20 = 2400 rupees. Since the final selling price including sales tax is 2688 rupees, the sales tax amount is 2688 - 2400 = 288 rupees, making the tax rate (288 / 2400) * 100 = 12 percent. His actual profit is 2400 - 1700 = 700 rupees, so his profit percentage is (700 / 1700) * 100 = 700/17 percent, which equals 41 3/17 percent. The rate of sales tax is 12 percent and his profit percentage is 41 3/17 percent.

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