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Example – 1. Mrs. Jaya buys a refrigerator whose list price is Rs.8000. If sales tax is charged at the rate of 7%, find the amount paid by Mrs. Jaya.

Solution : List Price = Rs.8000

Sales tax = 7% of list price
= 7/100 x Rs.8000
= Rs.560

Amount paid by Mrs. Jaya
= Rs. (8000 + 560)
= Rs. 8560