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Example - 4. Lata goes to a shop to buy a leather coat costing Rs. 654. The rate of sales tax is 9%. She tells the shopkeeper to reduce the price of the coat to such an extent that she has to pay Rs. 654 inclusive of sales tax. Find the reduced price and the reduction needed in the price of the coat.

Solution : Let reduced price be x

Reduced price = Rs.600

Reduction needed = Rs. (654 - 600)
= Rs.54