Mathematics Questions and Answers – Sales Tax/Value Added Tax

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This set of Mathematics Multiple Choice Questions & Answers (MCQs) focuses on “Sales Tax/Value Added Tax”.

1. What will be the buying price of a soap at Rs. 100 when 5% sales tax is added?
a) Rs 105
b) Rs 110
c) Rs 112
d) Rs 134
View Answer

Answer: a
Explanation: Cost price of soap = Rs. 100
Sales tax = 5%
= 5% of 100
= \(\frac{5}{100}\) × 100
= Rs. 5
Buying price = Cost price + sales tax = 100 + 5 = Rs.105
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2. If 5% VAT is included in the price of a shampoo bottles bought for Rs. 550 then what is the original price of the shampoo?
a) Rs 420
b) Rs 520
c) Rs 650
d) Rs 700
View Answer

Answer: b
Explanation: Let the original price of the shampoo be Rs. x
Sales tax = 5%
= 5% of x
= \(\frac{5}{100}\) × x
= Rs. \(\frac{5x}{100}\)
Buying price = Cost price + Sales tax
550 = x + \(\frac{5x}{100}\)
550 = \(\frac{105x}{100}\)
x = \(\frac{550×100}{105}\) = 523.80 ∼ 520
The original price of the shampoo is Rs. 520.

3. What will be the buying price of 12 kg of sugar at Rs. 20/kg when a 9% sales tax is added?
a) Rs 378.9
b) Rs 350.5
c) Rs 348.8
d) Rs 398.0
View Answer

Answer: c
Explanation: Cost of one kg sugar = Rs. 20
Cost of 12 kg sugar = 20 × 12 = 320
The cost price of sugar = Rs. 320
Sales tax = 9%
= 9% of 320
= \(\frac{9}{100}\) × 320
= 28.8
Buying price = Cost price + Sales tax = 320 + 28.8 = 348.8.
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4. If you buy a hair dryer for Rs. 10000 including 10% VAT what will be the price of the hair dryer before VAT was added?
a) Rs 9393
b) Rs 9292
c) Rs 9191
d) Rs 9090
View Answer

Answer: d
Explanation: Let the original price of the hair dryer be Rs. x
VAT added = 10%
= 10% of x
= \(\frac{10}{100}\) × x
= \(\frac{x}{10}\)
Buying price = cost price + sales tax
10000 = x + \(\frac{x}{10}\)
10000 = \(\frac{11x}{10}\)
x = \(\frac{10000×10}{11}\) = 9090.90 ∼ 9090

5. What will be amount Shridhar has to pay for a watch costing Rs. 18000 when 8% sales tax is added?
a) Rs 19440
b) Rs 18850
c) Rs 17560
d) Rs 16540
View Answer

Answer: a
Explanation: Cost price of watch = Rs. 18000
Sales tax = 8%
= 8% of 18000
= \(\frac{8}{100}\) × 18000
= Rs. 1440
Buying price = Cost price + sales tax = 18000 + 1440 = Rs. 19440
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6. The cost of a hover board was 15000 at the shop. What will be the bill amount after a sales tax of 10% is added?
a) Rs 16160
b) Rs 15150
c) Rs 14540
d) Rs 17170
View Answer

Answer: b
Explanation: Cost price of hover board = Rs. 15000
Sales tax = 10%
= 10% of 15000
= \(\frac{10}{100}\) × 15000
= Rs. 1500
Buying price = Cost price + sales tax = 15000 + 1500 = Rs. 15150

7. The bill amount of a cutlery set is Rs. 5000 including 9% sales tax. What is its original price?
a) Rs 4800
b) Rs 4700
c) Rs 5000
d) Rs 4500
View Answer

Answer: d
Explanation: Let the original price of the cutlery be Rs. x
VAT added = 9%
= 9% of x
= \(\frac{9}{100}\) × x
= \(\frac{9x}{100}\)
Buying price = cost price + sales tax
5000 = x + \(\frac{9x}{100}\)
5000 = \(\frac{109x}{100}\)
x = \(\frac{5000×100}{109}\) = 4587.15 ∼ 4500
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8. The cost of 1 kg of flour is Rs. 30 and 1 kg of sugar Rs. 35. What will be the bill amount if 10 kg of sugar and 15 kg of flour is bought with 5% of sales tax added?
a) Rs 866.25
b) Rs 890.98
c) Rs 865.56
d) Rs 834.56
View Answer

Answer: a
Explanation: Cost of 1 kg flour = Rs. 30
Cost of 10 kg sugar = 30 × 10 = 300
Cost of 1 kg sugar = Rs. 35
Cost of 15 kg sugar = 35 × 15 = 525
Total cost price = 525 + 300 = 825
Sales tax = 5%
= 5% of 825
= \(\frac{5}{100}\) × 825 = 41.25
Buying price = cost price + sales price = 825 + 41.25 = Rs. 866.25

9. What will be the bill amount of two sets of TV at Rs. 50000 each with a 7% of sales tax included?
a) Rs. 117000
b) Rs. 107000
c) Rs. 128000
d) Rs. 135000
View Answer

Answer: c
Explanation: Cost of 1 TV set = Rs. 50000
Cost of 2 TV sets = 50000 × 2 = 100000
Sales tax = 7%
= 7% of 100000
= \(\frac{7}{100}\) × 100000 = 7000
Buying price = cost price + sales price = 100000 + 7000 = Rs. 107000

10. If 6% VAT is added in the price of a lawn mower at Rs. 15000 then what is the original price of the lawn mower?
a) Rs 19000
b) Rs 16000
c) Rs 15000
d) Rs 14000
View Answer

Answer: d
Explanation: Let the original price of lawn mower be Rs x.
Sales tax = 6%
= 6% of x
= \(\frac{6x}{100}\)
Buying price = cost price + sales price
15000 = x + \(\frac{6x}{100}\)
15000 = \(\frac{106x}{100}\)
x = \(\frac{15000 × 100}{106}\) = 14150.94 ∼ 14000
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Sanfoundry Global Education & Learning Series – Mathematics – Class 8.

To practice all areas of Mathematics, here is complete set of 1000+ Multiple Choice Questions and Answers.

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Manish Bhojasia, a technology veteran with 20+ years @ Cisco & Wipro, is Founder and CTO at Sanfoundry. He lives in Bangalore, and focuses on development of Linux Kernel, SAN Technologies, Advanced C, Data Structures & Alogrithms. Stay connected with him at LinkedIn.

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