Jeans marked Rs 1,450 get a 10 per cent discount, then 5 per cent sales tax. What is finally paid?
ARs 1,357.50
BRs 1,370.25
CRs 1,377.50
DRs 1,392.00
Answer & Solution
Correct answer: B. Rs 1,370.25
1. Discount = (10/100) x 1450 = Rs 145, so the sale price is Rs 1,305.
2. Sales tax is charged on the selling price, not the marked price.
3. Tax = (5/100) x 1305 = Rs 65.25.
4. Amount paid = 1305 + 65.25 = Rs 1,370.25.
5. Netting the two rates into a single 5 per cent discount gives Rs 1,377.50, which is wrong.
_Source: syllabus Maths Ch7 'Comparing Quantities', Example 3 and Example 4 combined_
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