2017 · Q107
The price of an article is increased by 20%, Further, there is a tax of 5% on the increment. If the article costs Rs. 1,331 to the customer, then what was the price of the article before the increase in price?
General Mental Ability, Quantitative Aptitude and StatisticsNumber system and arithmetic
- ARs. 1,000
- BRs. 1,064
- CRs. 1,100
- DRs. 1,200
Explanation
Let the original price be P. The 20% increase adds 0.2P, and the 5% tax on the increment adds 0.05 x 0.2P = 0.01P. Total = P + 0.2P + 0.01P = 1.21P = Rs. 1,331, so P = 1,331 / 1.21 = Rs. 1,100. Hence C.