# Arvind bought a dining table for rs 23850, this includes 6% sales tax, the shopkeeper has made a profit of 12.5% on his investment, if the shopkeeper has spent rs 1000 for polishing and transportation, what is the actual cost of the table

1
by haseeb1973

2015-09-21T15:12:02+05:30

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Let the actual cost of the table be  Rs  C.
cost incurred by the shopkeeper = Rs 1000.
Total cost for shopkeeper = C + 1000
Profit = 25%
Sale price without tax = (C + 1000) * (100+25)/100 = 5 * (C + 1000)/4
Sales tax = 5*(C + 1000)/4  * 6/100

total price paid by Arvind  =
5 (C + 1000) /4 * 106/100  = Rs 23, 850
C + 1000 =  18000
C =  Rs 17, 000
that is the actual cost

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