Last year , an article was sold with a sales tax of 10 % on the marked price . This year , the rate of sales tax becomes 12 % . What is the percentage increase in the amount that a customer has to pay this year to buy it if the marked price remains the same?
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Solution :-Let the marked price of the article be Rs. 100
Then, the cost price of the article including sales tax @ 10 %
= 100 + (100*10)/100
= 100 + 10
= Rs. 110
Cost price including 10 % sales tax is Rs. 110.
Now, the marked price remains the same and rate of sales tax is 12 %.
Then, the cost price of the article including sales tax = 100 + (100*12)/100
= 100 + 12
= Rs. 112
So, cost price of the article including 12 % sales tax is Rs. 112.
Percentage increase in the amount paid by the customer
= [(112 - 110)*100]/110
= (2*100)/110
= 200/110
= 1.818 %
So, the amount paid by the customer is increased by 1.818 % this year to buy the article if the marked price remains the same.