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Word Problems/Sales tax and Value added tax

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Question
A trader buys an article for Rs.1700 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.2688 including sales tax on the new marked price. Find :
(1) the rate of sales tax
(2) the traders profit as per cent

Answer
"A trader buys an article for Rs.1700 at a discount of 15% on its printed price."
100% - 15% = 85%
Rs 1700 is 85% of the printed price.

Let x be the printed price.
0.85x = Rs 1700
x = 1700/0.15 = Rs 2000

"he raises the printed price of the article by 20%"
100% + 20% = 120%
The new marked price is 120% of the original marked price.
1.20x = Rs 2400

"then sells it for Rs.2688 including sales tax on the new marked price."
sales tax = Rs (2688 - 2400) = Rs 288
(Rs 288)/(Rs 2688) ≅ 0.107 = 10.7%
The tax rate is 10.7%

amount of profit = (selling price) - (purchase price) = Rs 2400 - Rs 1700 = Rs 700
percentage profit = (amount of profit)/(purchase price) = (Rs 700)/(Rs 1700) ≅0.412 = 41.2%

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Janet Yang

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Word problems are my favorite type of math questions! I would not feel comfortable answering questions that require specialized knowledge (Physics, Statistics, etc.) because I have not studied these in depth.

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I tutor students (fifth through twelfth grades) and am a Top Contributor on Yahoo!Answers with over 24,000 math solutions.

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Co-author of An Outline of Scientific Writing: For Researchers With English as a Foreign Language.

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I have a Bachelor's degree in Applied Mathematics from the University of California at Berkeley, and a Master of Business Administration degree from The Wharton School.

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George White Elementary School. Homework Help program at the Ridgewood Public Library, Ridgewood, NJ. Individual students.

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