Question

A retailer marked up the price of his goods by 20% above the list price and offers two successive discounts of 10% and 5%on the marked up price GST is @18%on the goods . Find the list price of goods if the consumer pays Rs 4617 as CGST . Also find the final price consumer has to pay for the goods

Answer 1

Let x be the cost price

Find the selling price in term of x:

Markup = 20%

Markup = 0.2x

Selling Price = x + 0.2x

Selling Price = 1.2x

Find the price after 10% discount:

Discount = 10%

Discount = 0.1(1.2x)

Discount = 0.12x

Price after discount = 1.2x - 0.12x

Price after discount = 1.08x

Find the price after 5% discount:

Discount = 5%

Discount = 0.05(1.08x)

Discount = 0.054x

Price after discount = 1.08x - 0.054x

Price after discount = 1.026x

Find the GST:

GST = 18%

GST = 0.18(1.026x)

GST = 0.18468x

Find the list price:

0.18468x = 4617

x = 4617 ÷ 0.18468

x = $25000

Find the  price that the consumer has to pay:

Amount to pay = 1.026x +  0.18468x

Amount to pay = 1.21068x

Amount to pay = 1.21068(25000)

Amount to pay = $30267

Answer: The list price is $25000 and the consumer pays $30267