Question

Varun spent Rs. 9 lakh on purchasing and altering his new car. He spent 7% on speakers and woofers, 5% on alloy wheels, 2% on insurance, 4%
on repainting, 9% on interiors and the remaining was the actual cost of the car. If Road Tax, charged at 10%, is included in the actual cost of the car,
calculate the amount of Road Tax?
Pick ONE option
A) Rs. 50230
B) Rs. 65700
C) Rs. 59727
D) Rs. 51354
Clear Selection​

Answer 1

Solution:

Varun spent money on purchasing and altering his new car = Rs. 900000

Spent 7% on speakers and woofers =>

7% of 900000

(7/100) * 900000

63000

Spent 5% on alloy wheels =>

5% of 900000

(5/100) * 900000

45000

Spent 2% on insurance =>

2% of 900000

(2/100) * 900000

18000

Spent 4%  on repainting =>

4% of 900000

(4/100) * 900000

36000

Spent 9% on interiors =>

9% of 900000

(9/100) * 900000

81000

Actual cost of the car = Total cost - Altering of car i.e. speakers and woofers, allow wheels, insurance, repainting, interiors

Actual cost of the car = 900000 - (63000 + 45000 + 18000 + 36000 + 81000)

Actual cost of the car = 900000 - 243000

Actual cost of the car = Rs. 657000

Now, it says Road tax is included in actual cost of car,

Road Tax charged = 10%

Road Tax Amount  = 10% of 657000 = (10/100) * 657000 = Rs. 65700

The amount of Road Tax is B) Rs. 65700

Answer 2

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