PERCENT OF A NUMBER TAX DISCOUNT AND MORE

Sales tax :

This sales tax is charged by the government on the sale of an item. It is collected by the shopkeeper from the customer and given to the government.

This is, therefore, always on the selling price of an item and is added to the value of the bill. These days however, the prices include the tax known as Value Added Tax (VAT). 

Discount :

Discount is the reduction in value on the marked Price or list price of the article.

Discount = Marked Price - Selling Price

Selling Price = Marked Price - Discount

Marked Price = Selling Price + Discount

Examples

Example 1 :

A bicycle marked at $1,500 is sold for $1,350. What is the percentage of discount?

Solution :

Marked price  =  $1,500

Selling price  =  $1,350

Discounted amount  =  1500  -  1350  =   150

Discount percentage is

=  (Discounted amount / Marked price) ⋅ 100%

  =  (150 / 1500) ⋅ 100%

  =  10%

Example 2 :

The list price of a frock is $ 220. A discount of 20% on sales is announced. What is the amount of discount on it and its selling price ?

Solution :

List price of a frock  =  $220.

Discount  =  20%.

Amount of discount is

=  20% of 220

  =  (20 / 100) ⋅ 220

  =  44

Selling price is

=  List price  - Amount of discount

  =  220  -  44

  =  176

Hence, the amount of discount is $44 and the selling price is $176.

Example 3 :

An table is sold at $5,225 after allowing a discount of 5%. Find its marked price.

Solution :

Selling price of the table  =  $5225

Discount  =  5%

Let x be the marked price. 

Then, we have

x - 5% of x  =  5225

x - 0.05x  =  5225

0.95x  =  5225

Divide each side by 0.95.

x  =  5500

Hence, the marked price of the table is $5500.

Example 4 :

I purchased a hair-dryer for $5,400 including 8% VAT. Find the price before VAT was added.

Solution :

Selling price of hair dryer (including tax)  =  5400

Let x be the marked price. 

Then, we have

x + 8% of x  =  5400

x + 0.08x  =  5400

1.08x  =  5400

Divide each side by 1.08

x  =  5000

Amount paid for sales tax is

=  8% of 5000

  =  0.08 ⋅ 5000

  =  400

Hence, the amount paid for sales tax is $400.

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