Practice the questions given in the worksheet on mark-ups and discounts involving sales tax.
1. Michael purchased a washing with a marked price of $ 16500at a discount of 8%. If sales tax is charged at 10% on the price asked for, find the amount Michael had to pay for the washing machine.
2. Alex bought an article for $ 374 which includes a discount of 15% on the listed price and a sales tax at the rate of 10% on the reduced price. Find the listed price of the article.
3. A man wants to purchase an article of marked price $ 400, which is being sold at a discount. If the sale tax is 10% on the price charged, he can buy it for $ 4200. Find the rate of discount allowed.
4. The listed price of an article is $ 560. The shopkeeper marks up the price and sells it at $ 735 which includes a sales tax 5% on the price asked for. By what per cent did the shopkeeper marked up the listed price?
5. A shopkeeper marks up the listed price of an article by
8% but allows a discount of 55 on the raised price. He sells it at $ 677.16
inclusive of a sales tax of 10% on the price asked for. Find the listed price
of the article.
6. The catalogue price of a colour TV is $ 24000. A shopkeeper gives a discount of 8% on the listed price. He gives a further off-season discount of 5% on the balance. But sales tax at 10% is charged on the remaining amount. Find:
(i) the sales tax amount a customer has to pay, and
(ii) the final price the customer has to pay for the TV.
Answers for the worksheet on mark-ups and discounts involving sales tax are given below.
2. $ 400
4. 25 %
6. $ 600
7. (i) $ 2097.60
(ii) $ 23073.60
● Sales Tax and Value Added Tax