A shopkeeper allows a discount of 10% on the marked price of an item but charges a sales tax of 8% on the discounted price. If the customer pays ₹ 34,020 as the price including the sales tax, then what is the marked price?

Given:

Discount = 10%

Sales Tax = 8%

Price including tax = ₹34,020

Formula used:

Let the marked price be M

Discounted Price = M × (1 - Discount%)

Price including tax = Discounted Price × (1 + Sales Tax%)

Calculation:

Let the marked price be M

Discounted Price = M × (1 - 0.10)

⇒ Discounted Price = M × 0.90

Price including tax = Discounted Price × (1 + 0.08)

⇒ ₹34,020 = M × 0.90 × 1.08

⇒ ₹34,020 = M × 0.972

⇒ M = ₹34,020 / 0.972

⇒ M = ₹35,000

∴ The correct answer is option 1.