Which of the following statements is correct?

Class 8Comparing QuantitiesComparing Quantities

ASales tax is calculated on the selling price
BDiscount is added to the marked price
CCost price is always greater than selling price
DCompound interest grows in a straight line over time

Step-by-Step Solution

Sales tax/GST is a percentage of the selling price added on top. Discount is subtracted, not added; CP need not exceed SP; CI grows exponentially, not linearly.

Answer: A) Sales tax is calculated on the selling price

Key idea: Discount

A discount is a reduction off the **marked price** (MP), not the cost price. The selling price (SP) is what the customer actually pays.

**SP = MP − Discount**
**Discount % = (Discount / MP) × 100**

Example: shirt MP ₹800, discount 25%. Discount amount = 25% of 800 = 200. SP = 800 − 200 = 600.

Note: discount % is calculated on MP. Profit/loss % (Class 7) is on CP. Don't mix them up.

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