SOLUTION: A person gets electrival goods worth rupees 7500. He gets a rebate of 5%on the bill. If the sales tax at rate of 5% is charged, find the amount he will have to pay?

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Question 1092073: A person gets electrival goods worth rupees 7500. He gets a rebate of 5%on the bill. If the sales tax at rate of 5% is charged, find the amount he will have to pay?
Found 2 solutions by addingup, MathTherapy:
Answer by addingup(3677)   (Show Source): You can put this solution on YOUR website!
Usually you get taxed on the real value of the goods, this is, before the discount. Like this:
:
Goods... : 7500
Tax..... : 375 (7500 × 0.05)
---------------
Total... : 7875
Discount : 375 (7500 × 0.05)
------------------------
Net. . . : 7500
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Having said that, I'm not your professor, and s/he may have asked for a different calculation, like this:
:
Goods. . . . : 7500
Discount. . .: 375
---------------------
Sub-total . .: 7125
Tax . . . . .: 356.25
----------------------------
Total. . . . : 7481.25
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Use the one that is appropriate in your case.
:
John
Answer by MathTherapy(10552)   (Show Source): You can put this solution on YOUR website!
A person gets electrival goods worth rupees 7500. He gets a rebate of 5%on the bill. If the sales tax at rate of 5% is charged, find the amount he will have to pay?
Correct answer: 

There's ABSOLUTELY no such thing as calculating sales tax on an item before the discount is APPLIED. 

This is NONSENSICAL, and does not exist, in all my years of buying products. 

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