Question
A car rental service charges ₹500 for the first 100
kilometers and ₹8 for each additional kilometer. If a customer drives 150 kilometers in a day and pays a 10% service tax on the total amount, what is the total amount paid by the customer for that day?Solution
Base charge for first 100 km = ₹500. Additional kilometers = 150 - 100 = 50 km. Charge for additional kilometers = 50 * 8 = ₹400. Total charge before tax = 500 + 400 = ₹900. Service tax = 10% of 900 = ₹90. Total amount paid = 900 + 90 = ₹990. Correct answer: B) ₹990
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