A shopkeeper marks the price of a cycle 5 percent above the market price and then charges a 12 percent sales tax on the original market price. If a customer pays Rs. 4,680 for the cycle, what is the market price of the cycle?
Q1. A shopkeeper marks the price of a cycle 5 percent above the market price and then charges a 12 percent sales tax on the original market price. If a customer pays Rs. 4,680 for the cycle, what is the market price of the cycle?
Answer: Rs. 4000
Explanation: Selling price = 1.05M + 0.12M = 1.17M = 4680, giving market price M = Rs. 4000.