Maths · Probability: Probability of an event, addition and multiplication theorems of probability

The marked price of an article is Rs. 900 and the rate of sales-tax on it is . I

The marked price of an article is Rs. 900 and the rate of sales-tax on it is \( 6 \% \). If on selling the article at its marked price, a retailer has to pay \( \mathrm{VAT}=\mathrm{Rs} .4 .80 ; \) find the money paid by him (including salestax) for purchasing this article.

  • A. \( R s .754 .20 \)
  • B. \( R s .869 .20 \)
  • C. \( R s .946 .20 \)
  • D. Rs.1023.20

Step-by-step solution

Output tax (sales tax on selling price) = 6% of Rs. 900 = Rs. 54. VAT = Output tax - Input tax, so Input tax = Output tax - VAT = 54 - 4.80 = Rs. 49.20. Input tax is 6% of purchase price, so purchase price (excluding tax) = 49.20 / 0.06 = Rs. 820. Total money paid including sales tax = 820 + 49.20 = Rs. 869.20, which matches option B.
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