arvind bought a table for₹ 23,850.this includes 6% sale tax.the shopkeeper has made a profit of 25/2% on his investment. if the shopkeeper has spent ₹1000 on transportation,what is the real cost of table.
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Let the actual cost of the table be Rs C.
cost incurred by the shopkeeper = Rs 1000.
Total cost for shopkeeper = C + 1000
Profit = 25%
Sale price without tax = (C + 1000) * (100+25)/100 = 5 * (C + 1000)/4
Sales tax = 5*(C + 1000)/4 * 6/100
total price paid by Arvind =
5 (C + 1000) /4 * 106/100 = Rs 23, 850
C + 1000 = 18000
C = Rs 17, 000
that is the actual cost
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