Salim buys an article for Rs 784 which includes GST of 12 per cent. What is the price before GST?
ARs 700
BRs 690
CRs 710
DRs 672
Answer & Solution
Correct answer: A. Rs 700
1. The paid price already contains the tax, so Rs 784 is 112 per cent of the base price.
2. Base price = 784 x (100/112).
3. 784 / 112 = 7, so base price = 7 x 100 = Rs 700.
4. Check: 12 per cent of 700 = 84, and 700 + 84 = 784.
5. Deducting 12 per cent of 784 gives Rs 690, the trap answer.
_Source: syllabus Maths Ch7 'Comparing Quantities', Example 6_
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