Mr. Bapat buys sunglasses, costing ₹ 625, for ₹ 650 including sales tax.Calculate the rate of sales tax charged.
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Answer:
To calculate the rate of sales tax charged, we can use the following formula:
Rate of sales tax = (Total amount paid - Cost of the item) / Cost of the item
In this case, the cost of the sunglasses is ₹ 625, and the total amount paid (including sales tax) is ₹ 650.
So,
Rate of sales tax = (650 - 625) / 625
= 25 / 625
= 1 / 25
Therefore, the rate of sales tax charged is 1/25 or 4%.
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