Question

A shopkeeper sells an article for Rs. 21,384 including 10% sales tax. However, the actual rate of sales tax is 8%. Find the extra profit made by the dealer.

Answer 1

Price of the article inclusive of sales tax = Rs. 21,384

Let y be the list price of the article

Rate of sales tax charged by the shopkeeper = 10%

According to the given statement, we have

Extra profit = Sale price of the article charged by shopkeeper − Actual sale price

⟹ Extra profit = Rs. 21,384 - Rs. 20.995.2 = Rs. 388.80 Ans.