A bicycle is available for Rs 32,864 including tax. If the list price of the bicycle is Rs 31,600, find :
the rate of Tax.

Answer

To find the rate of tax on the bicycle, we can follow these steps:

### Step 1: Identify the given values
- List Price (LP) = Rs 31,600
- Selling Price (SP) including tax = Rs 32,864

### Step 2: Calculate the amount of tax
The amount of tax can be calculated using the formula:
\[ \text{Tax} = \text{Selling Price} - \text{List Price} \]
Substituting the values we have:
\[ \text{Tax} = 32,864 - 31,600 \]
\[ \text{Tax} = 1,264 \text{ Rs} \]

### Step 3: Calculate the tax percentage
To find the rate of tax (tax percentage), we use the formula:
\[ \text{Tax Percentage} = \left( \frac{\text{Tax}}{\text{List Price}} \right) \times 100 \]
Substituting the values:
\[ \text{Tax Percentage} = \left( \frac{1,264}{31,600} \right) \times 100 \]

### Step 4: Perform the division
Calculating the division:
\[ \frac{1,264}{31,600} \approx 0.04 \]

### Step 5: Multiply by 100 to get the percentage
Now, multiply by 100:
\[ \text{Tax Percentage} = 0.04 \times 100 = 4\% \]

### Final Answer
The rate of tax is **4%**.

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