Direct proportion used in tax related calculations

Direct proportion used in tax related calculations

Tax related calculations are the opposite of discount related calculations.

You ask how it is.

Aren't we deducting the discount from the marked price in the discount related calculations! Tax should be added from the marked price mentioned in the tax related calculations. That is the difference between discount calculations and tax calculations.

If the selling price is reduced from the marked price after discount, the selling price will be increased from the marked price after tax.

Thus, when relating the marked price to the percentage, it should be 100 and the selling price should be related to 100 plus the tax percentage.

For example, if the tax percentage is 10%, the selling price should be taken as 110 while relating the percentage.

Let's take a look at a tax-related calculation? Shall we put it using direct proportion?

A watch costs Rs. 500. Find its selling price if it is taxed at 18%.

What will we see?

Shall we create the table first?

Price	500	x
Percentage	100	118

 

The marked price is given as Rs. 500. We have taken it as such. We have marked below it that its percentage is 100.

The selling price should be found. We have marked it as x. If we look at it as a percentage, we have marked it as 118 because we get 18 percent tax percentage from the marked price of 100 percent. What is right?

Do you know what to do next?

Equate the ratios and cross multiply to find the answer i.e. the value of x?

500 / 100 = x / 118

5 = x / 118

5 × 118 = x

590 = x

x = 590

The selling price after tax is Rs. 590.

Did you see how easy it is to find out using direct proportion?

As usual, If the tax is 18% on a watch worth Rs 500, find the tax using the direct proportion method.

And using direct proportion method, Find the marked price of a watch taxed at 18% with a selling price of Rs.590. Calculate it. the price is Rs. 500 can be checked or not!

You mean let's do it all in full swing?

Well, what's next, you ask?

Know about angles?

You mean we know better about it? However, there are some things to understand. We will look at that only next.

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