Question
Gaurav ate in a restaurant and got a membership discount
of 30% on the original bill amount but he has to pay 9% as service tax and 8% service charge on the discounted bill amount. If Gaurav paid Rs 4,345, which included a tip of Rs 250, how much money did he gave as service charge?Solution
Let the bill after 30% discount be Rs x According to the question, (x × 117)/100 = 4,345 – 250 (x × 117 ) /100 = 4,095 x = (4095 × 100 ) /117 = Rs 3,500 Service charge = (3500 × 8)/100 = Rs 280
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