Hariharan goes to a shop to buy an FM Radio costing Rs. 1404, including sales tax of 8%.

Ques - Hariharan goes to a shop to buy an FM Radio costing Rs. 1404, including sales tax of 8$\%$. He asks the shopkeeper to reduce the price of radio so that he can save an amount equal to the sales tax. The reduction in the price of the radio is :

(a) Rs. 108

(b) Rs. 104

(c) Rs. 112.32

(d) None of these

Solution -

Let,

The original price of the Radio = 100x

Price of radio including sales tax of 8% = 1404

100x + 8% of 100x = 1404

100x + (8/100) × 100x = 1404

100x + 8x = 1404

108x = 1404

x = 1404/108

x = 13

Now,

Original price of radio = 100x

Original price of radio = 100 × 13

Original price of radio = 1300

Therefore,

Reduction in the price = 1404 - 1300

Reduction in the price = 104

Hence,

The correct answer is option (b) 104.