Ramesh stayed in a hotel for two days. The room rent was Rs. 3500 per days. He also had to pay a luxury tax of 7 percent on the room rent for two days. How much didi he pay in all for the two day's stay?
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Given,
Number of days Ramesh stayed in the hotel = 2 days
Rent of hotel per day = Rs 3,500
Amount = rent per day * number of days
= 3500*2
= Rs 7,000
Luxury tax rate = 7% charged on room rent
Luxury tax = Luxury tax rate% of room rent
= 7 / 100 * 7000
(Tax is always charged on the total amount and not on rate)
= Rs 490
Amount payable = Amount + Tax charged
= 7000 + 490
= Rs 7490
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