On a marked price of Rs 5000, a shop first adds 18% GST and then gives a 10% discount on the marked price (not on the taxed amount). If instead it gave the 10% discount first and then added 18% GST, the customer would save how much?

Question

Accepted Answer

Rs 90. Method 1 (tax then flat discount): 5000 x 1.18 = 5900, minus 10% of 5000 = 500 gives 5400. Method 2 (discount then tax): 4500 x 1.18 = 5310. Saving = 5400 - 5310 = Rs 90.

On a marked price of Rs 5000, a shop first adds 18% GST and then gives a 10% discount on the marked price (not on the taxed amount).
If instead it gave the 10% discount first and then added 18% GST, the customer would save how much?

Step-by-Step Solution

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More Class 8 Discount and Tax practice

On a marked price of Rs 5000, a shop first adds 18% GST and then gives a 10% discount on the marked price (not on the taxed amount).If instead it gave the 10% discount first and then added 18% GST, the customer would save how much?

Step-by-Step Solution

Master this chapter in 30 minutes a day.

More Class 8 Discount and Tax practice

On a marked price of Rs 5000, a shop first adds 18% GST and then gives a 10% discount on the marked price (not on the taxed amount).
If instead it gave the 10% discount first and then added 18% GST, the customer would save how much?