Question

Sanju goes to a shop to buy a bicycle quoted at Rs. 2,000. The rate of sales tax is 12% on it. He asks the shopkeeper for a rebate on the price of the bicycle to such an extent that he has to pay Rs. 2016 inclusive of sales tax. Find the rebate percentage on the price of the bicycle.

Answer 1

SP = 2016, ST = 12%

Let MP = X

SP = MP + 12% MP

∴ 2016 = x + 0.12%

⇒ x = 1800

⇒ Rebate = 2000 – 1800 = Rs. 200

Rebate % = 200/2000 x 100 = 10%