MAT Exam 2020 Paper

Concept:The marked price is found by reversing the effect of the discount and the sales tax.Explanation:Let the marked price be ₹ $100$. Discount allowed $= 10\%$ of ₹ $100 = ₹10$. So, discounted price $= ₹100 - ₹10 = ₹90$. Sales tax $= 8\%$ of ₹ $90 = \frac{8}{100} \times 90 = ₹7.20$. Thus, total amount paid when marked price is ₹ $100$: $$₹90 + ₹7.20 = ₹97.20.$$ Now, if ₹ $97.20$ is the total paid amount, the marked price is ₹ $100$. Therefore, if ₹ $680.40$ is paid, the marked price is: $$\frac{100}{97.20} \times 680.40 = ₹700.$$Answer:The marked price of the item is ₹ $700$. Hence, the correct option is B. ₹700.