If the sale tax is reduced from 3&1/2 % to 3&1/3%, then what difference does…
2023
If the sale tax is reduced from 3&1/2 % to 3&1/3%, then what difference does it make to a person who purchases an article with market price of Rs 8400 ?
- A.
12 rupee
- B.
14 rupee
- C.
16 rupee
- D.
18 rupee
Attempted by 73 students.
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Correct answer: B
Answer: 14 rupee
Convert the mixed percentages to improper fractions or decimals and compute each tax:
Tax at 3 1/2% = 3.5% = 8400 × 3.5% = 8400 × (3.5/100) = 8400 × 0.035 = 294 rupee.
Tax at 3 1/3% = 10/3% ≈ 3.333...% = 8400 × (10/3)% = 8400 × (10/3) /100 = 8400 × 10 /300 = 280 rupee.
Difference in tax = 294 − 280 = 14 rupee.
Therefore the reduction in tax payable on an article priced at Rs 8400 is 14 rupee.