Question

A retailer buys a commodity at a discount of 25$\%$from a wholesaler. The printed price of MRP is 2500.Assume the transaction is intra-state and the rate of GST is 5$\%$.What is the price of the commodity inclusive of GST at which the retailer bought from the wholesaler?

• A. 1960.07
• B. 1965.87
• C. 1968.75
• D. 1967.57

Answer 1

Answer: (C)

1968.75

Answer 2

Printed MRP = 2500, on which retailer gets: 25% discount.

So, Discounted price:
$\text{Discount} = 25\% \times 2500 = \frac{25}{100} \times 2500 = 625$

$\text{Price after discount} = 2500 - 625 = 1875$

$\text{GST} = 5\% \times 1875 = \frac{5}{100} \times 1875 = 93.75$

So, the total price inclusive of GST:
$\text{Total price} = 1875 + 93.75 = 1968.75$

Therefore, The correct option is (C).