Question

James buys a cycle worth ₹ 20000 and pays ₹ 21000 for the same. What percent of tax did he pay

Answer 1

James buys a cycle worth ₹ 20000 and pays ₹ 21000 for the same.

That means Cost Price = ₹20000

Amount to be paid is = ₹21000

Tax = ₹( 21000 - 20000) = ₹1000

$tax\% = \frac{tax}{cp} \times 100 \\ \\ \\ = \frac{1000}{20000} \times 100 \\ \\ \\ = \frac{1}{20} \times 100 \\ \\ \\ = 5\%$

So, tax paid is to be 5%