Worksheet on Mark-ups and Discounts Involving Sales Tax with stepwise solutions on this page. So, the students who are unable to understand what is meant by sales tax and value added tax can make use of our article and learn the concept in a simple manner. Our intention of providing the Worksheet on Mark-ups and Discounts Involving Sales Tax is to make you learn simple tricks of solving the problems. Hence refer to our page and score good marks in the exams.

Also Read:

- Worksheet on Sales Tax and Value-added Tax
- Worksheet on Printed Price, Rate of Sales Tax and Selling Price

## Mark-Ups and Discounts Involving Sales Tax Worksheet with Solutions

**Example 1.**

A machine is sold at Rs 66000 after a 10% discount and 10% VAT on the marked price. Find the discount amount.

**Solution:**

Here

The selling price with VAT = 66000

Discount = 10%

VAT = 10%

Discount amount =?

We know that

SP = 100/100 + V% × SP with VAT

100/100 + 10 × 66000

100/110 × 66000

60000

Again

Marked price MP = 100/100 – d% × SP

100/100 -10 × 60000

= 66666

Discount amount Marked price – selling price

66,666 – 60,000

= 6666

The discount amount is Rs 66,666

**Example 2.**

Dev sold a telescope at a gain of 10% after allowing a discount of 5%. Had it been sold after allowing a 30% discount there would have been Rs 600. Find the marked price of the telescope.

**Solution:**

Here

Marked price = Rs x

In case 1

Discount = 5%

Selling price = marked price – discount % of marked price

= x – 5% of x

= x – 5/100 × x

x – 5/100 × x

= 95x/100

Profit = 10%

CP1 = 100/100 + p% × SP

100/100 + 10 × 95x/100

100/110 × 95x/100

95x/110 = 0.86 x

In case 2

Discount = 30%

Selling price = marked price – discount % of marked price

x -30% of x

x – 30/100 × x

70/100

= 7x/10 = 0.7

Loss = 600

CP2 =SP + loss = 0.7x + 400

But CP is same

CP1 = CP2

0.86x = 0.7x + 400

0.86x – 0.7x = 400

0.16x = 400

x = 400/0.16

x = 2500x

The marked price of the telescope is Rs 2500.

**Example 3.**

Davis bought a car listed at $ 53500 at a 4% discount and then a 6% sales tax charged on the discounted price. Find the amount Davis paid for the car.

**Solution:**

Given that,

Price listed on the car = $ 53500, rate of discount = 4%

Therefore, the amount of discount = $ (53500 X 4/100) = $ 2140

Therefore, the selling price of the car = $ (53500 – 2140) = $ 51360.

The rate of sales tax = 6%

Therefore, the sale tax on the car = $ (51360X 6/100) = $ 3081.6

Therefore, the amount paid by Davis = $ (51360 + 3081.6) = $ 54441.6.

**Example 4.**

Ron buys a car for $ 32,100 which includes 8% discount and then 4% sales tax on the marked price. Find the marked price of the car.

**Solution:**

Let the marked price of the car be P.

Then, the discount on marked price = 8% of P = 8/100 P = 0.08P

The sales tax = 4% of P = 4/100 P = 0.04P

Therefore, the price paid = P – 0.08P+ 0.04P

= P – 0.13P = 0.87P

According to the problem we get, 0.87P = $32100

P = $32100/ 0.87

= $36896.5

Therefore, the marked price of the car is $36896.5

**Example 5.**

Due to the short supply in the market, a shopkeeper raises the price of an aeroplane by 5% above the marked price and charges a sales tax of 12 % on the marked price. A customer has to pay $ 3880 for the aeroplane. Find the marked price of the aeroplane.

**Solution:**

Given that

The shopkeeper raise the price of a aeroplane = 5%

The marked price and changes a sales tax = 12%

Customer has to pay for the aeroplane = $ 3880

Let the market price of a aeroplane be P.

Then, the raised price = P + 5% of P = P + 5P/100 = 21P/20

Sales tax = 12% of P = 12/100 P = 3/25 P

Therefore, the price payable = 21P/20 + 3P/25 = 105P + 12P/100 = 117P/100

According to the problem we get, 117P/100 = $3880

P = $3880 × 100/117

= $3316.2

Therefore, the marked price of the aeroplane is $3316.2

**Example 6.**

A man wants to purchase gold at a marked price of Rs.3000 which is being sold at a discount. If the sales tax is 6 % on the price charged, he can buy it for Rs.2200. Find the rate of discount

**Solution:**

Given that

Man wants to purchase gold of marked price = Rs 3000

So, M.P=Rs.3000

Sales Tax=6 %

Hence,

Sales Tax = 3000 × 6/100

= Rs 180

So,

C.P = 3000 + 180 = Rs.3180

And,

Discount = 3180 – 2200=Rs. 980

Therefore,

Discount percentage = (980/3000) × 100% = 32.6%

The rate of discount on gold = 32.6%

**Example 7.**

Zoya purchased a drilling machine with a marked price of 12500 at a discount of 7%. if sales tax is charged at 9% on the price asked to find the amount Zoya had to pay for the drilling machine.

**Solution:**

Given that

The marked price of a drilling machine = 12500

The discount of a drilling machine = 7%

The tax of a drilling machine= 8%

first we find discount

12500×7/100

= 875

so, discount = 12500 – 875

= 11625

and tax = 9%

11625 × 9/100

= 1046.2

The total amount that Zoya paid = 1046.2 + 11625

= 12671.2

Therefore the amount paid by Zoya = 12671.2

**Example 8.**

The catalogue price of a computer is Rs. 40,000. The shopkeeper gave a discount of 12% on the listed price. He further gives an off-season discount of 6% on the discounted price. However, sales tax at 7% is charged on the remaining price after the two discounts. Find the amount of sales tax a customer has to pay.

Solution:

Given that

Catalogue price of computer = Rs 40,000

Discount price (12%) = Rs 40000 × 12/100

= Rs 4800

Further off season discount (6%) = Rs 4800 × 6/100 = Rs 288

Tax to be paid (7%) = Rs 288 × 7/100 = Rs 20.16.

Therefore the sales tax paid by the customer = Rs 20.16

**Example 9.**

The price of a Samsung mobile inclusive of Sales Tax of 12% is Rs. 27340. Find its marked price. If Sales Tax is increased to 11%, how much more does the customer have to pay for the Samsung phone?

**Solution:**

Given that

The price of a Samsung mobile inclusive of sales tax = 27,340

Inclusive of sales tax = 12%

The marked price of two cups A and B together are Rs. 7000. The sales tax on cup A is 8% and that on cup B is 10%. If on selling both the cups, the total sales tax collected is Rs. 662, find the marked price of each of the two cups A and B.

The sales tax is increased = 11%

let the marked price is Rs.x

Therefore x+12% of x = 27340

x + 12/100 = 27340

112x/100 = 27340

x = Rs 24410

If the sales tax is increased 13% then

The price of the Samsung phone = 24410 +11% of 24410

= 24410 + 11/100 × 24410

= 27095

Therefore customer pay on Samsung phone = 27095 – 24410 = Rs. 2685

**Example 10.**

The marked price of two cups A and B together is Rs. 7000. The sales tax on cup A is 8% and that on cup B is 10%. If on selling both the cups, the total sales tax collected is Rs. 662, find the marked price of each of the two cups A and B.

**Solution:**

Given that

Let the Marked price of the cup A = Rs. x

Then Marked price of the cup B = Rs (7000 − x)

Then according to the question

8x/100 + 10/100(7000 – x) = 662

8x/100 + (10/100 × 7000) – 10x/100 = 662

8x/100 + 700 – 10x/100 = 662

8x/100 – 10x/100 = 662 – 700

= – 2x/100 = – 38

2x/100 = 38

2x = 38 × 100

x = 3800/2

x = 1900

Hence the marked price of cup A = Rs. 1900

Then Marked price of the cup B = 7000 − 1900 = Rs. 5100.