An item in a shop is priced at Rs. 375 excluding tax. The shopkeeper offers a discount of 15%, however there is a tax of 12% before discount on the item. The selling price of the item is:

Correct option is C

Given:

• Marked price (excluding tax) = Rs. 375
• Tax = 12% before discount
• Discount = 15% (applied after tax)

Concept Used:
First, add tax to the price → get taxed price
Then apply discount on the taxed price to get final selling price

Formula Used:

1. Price after tax = Marked price × (1 + Tax%)
2. Selling price = Price after tax × (1 – Discount%)

Solution:

$$\begin{aligned}\textbf{Step 1:} &\quad \text{Add 12\% tax to Rs. 375} \\& 375 \times \left(1 + \frac{12}{100}\right) = 375 \times 1.12 = 420 \text{ (Rs.)} \\[10pt]\textbf{Step 2:} &\quad \text{Apply 15\% discount on Rs. 420} \\& 420 \times \left(1 - \frac{15}{100}\right) = 420 \times 0.85 = 357 \text{ (Rs.)}\end{aligned}$$​

Correct Option: (C) Rs. 357