Question
The price of an article is increased by 20%. Further,
there is a tax of 5% on the increment. If the article costs ₹ 1,331 to the customer, then what was the price of the article before the increase in price?Solution
Percentage of tax = 20% × 5/100 = 1% So percentage of price increase by = 20% + 1% = 21% Let price of the article before be x, According to the question x × 121/100 = 1331 ⇒ x = 1331 × 100/121 ⇒ x = 1100 ∴ Price of the article before was Rs. 1100.
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