X bought goods worth Rs. 7500. He gets a rebate of 10 percent on it. After getting the rebate, he pays sales tax at the rate of 12.5 percent. What is the final amount that he has to pay?

1. A

   Rs. 7593.75

2. B

   Rs. 7625

3. C

   Rs. 7500

4. D

   Rs. 7533.75

Appeared in: DSSSB - 29 August 2019 (Shift-2)

Explanation

• The correct approach is to first calculate the discount and subtract it from the original price, then calculate the tax on this new, lower price.
• First, the 10% rebate on Rs. 7500 is Rs. 750. The price after the rebate is Rs. 7500 - Rs. 750 = Rs. 6750.
• Next, the 12.5% sales tax is calculated on the discounted price of Rs. 6750, which amounts to Rs. 843.75.
• Finally, the tax is added to the discounted price to get the final amount: Rs. 6750 + Rs. 843.75 = Rs. 7593.75.

Why Other Options Were Wrong

• Option B: This is an incorrect calculation. It might result from misinterpreting how the tax and rebate are applied, for example, by incorrectly adding or subtracting percentages.
• Option C: This is the original price of the goods. It incorrectly assumes that the rebate and the sales tax cancel each other out, which they do not.
• Option D: This is an incorrect calculation. This error could arise from applying the percentages to the wrong base amounts or from an arithmetic mistake during addition or multiplication.

Related Visual

Clinical Relevance

• Nursing practice connection: This is primarily an exam-oriented knowledge point with limited direct bedside application, so retain Calculation of successive percentages involving discounts and taxes as background academic context rather than a clinical decision trigger.
• This question tests fundamental quantitative aptitude, a skill necessary for various competitive exams.
• Understanding percentages is crucial in many fields for tasks like calculating discounts, interest, taxes, and data analysis.
• What if the sales tax was applied before the rebate? The final price would be the same: (7500 × 1.125) × 0.90 = 8437.5 × 0.90 = Rs. 7593.75. For successive percentage changes (multiplication), the order does not matter. However, understanding the standard convention (discount first, then tax) is important.

How to Approach the Question

• First, identify the initial value (Rs. 7500), the rebate percentage (10%), and the sales tax percentage (12.5%).
• Understand the sequence of operations: a rebate reduces the price, and a sales tax increases it.
• Calculate the price after the 10% rebate is applied to the original price.
• Next, calculate the 12.5% sales tax based on the new, discounted price.
• Add the sales tax amount to the discounted price to find the final total cost.
• Alternatively, use the multiplier method: Final Price = Initial Price × (1 - discount rate) × (1 + tax rate).

Concept Tested & Keywords

• Concept Tested: Calculation of successive percentages involving discounts and taxes.
• Stem keywords: goods worth, rebate, sales tax, final amount
• Lead-in keywords: What is the final amount

Question ID

QVdH9WfQXDMjFsAjsdS09D

Copy ID