The marked price of an article is ₹ 1,500 and discount on it is 20%. How much money will be paid for this article, if the rate of GST is 18%?
Understand the Problem
The question is asking to calculate the final price of an article after applying a discount and including a Goods and Services Tax (GST). The marked price is given along with the discount and GST rates, and we need to determine how much money will be paid for the article.
Answer
The final price to be paid is ₹1,416.
Answer for screen readers
The final amount to be paid for the article is ₹1,416.
Steps to Solve
- Calculate the Discount Amount
To find the discount amount, use the formula: $$ \text{Discount Amount} = \text{Marked Price} \times \frac{\text{Discount Rate}}{100} $$
Here, the marked price is ₹1,500 and the discount rate is 20%.
So, $$ \text{Discount Amount} = 1500 \times \frac{20}{100} = 1500 \times 0.2 = ₹300 $$
- Calculate the Selling Price After Discount
Next, calculate the selling price after applying the discount: $$ \text{Selling Price} = \text{Marked Price} - \text{Discount Amount} $$
Thus, $$ \text{Selling Price} = 1500 - 300 = ₹1,200 $$
- Calculate the GST Amount
Now calculate the GST amount on the selling price using the formula: $$ \text{GST Amount} = \text{Selling Price} \times \frac{\text{GST Rate}}{100} $$
Given that the GST rate is 18%, $$ \text{GST Amount} = 1200 \times \frac{18}{100} = 1200 \times 0.18 = ₹216 $$
- Calculate the Final Price
Finally, determine the total amount payable by adding the GST amount to the selling price: $$ \text{Final Price} = \text{Selling Price} + \text{GST Amount} $$
Thus, $$ \text{Final Price} = 1200 + 216 = ₹1,416 $$
The final amount to be paid for the article is ₹1,416.
More Information
The calculation involves applying a discount which reduces the marked price, followed by adding Goods and Services Tax (GST) to find the final amount payable. This procedure is common in retail transactions.
Tips
- Confusing the discount rate with GST rate: Always pay attention to which percentage applies to which part of the calculation.
- Incorrectly calculating the discount: Ensure that the marked price is multiplied by the correct discount rate.
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