If the GST on a certain article was Rs.600 two years back and it increased to Rs.750 this year, find the percentage increase in the GST on that article. 

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  1. 30%
  2. 15%
  3. 25%
  4. 20%

Answer (Detailed Solution Below)

Option 3 : 25%
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Detailed Solution

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Given:

GST two years back = ₹600

GST this year = ₹750

Formula used:

Percentage Increase = \(\dfrac{\text{New Value} - \text{Old Value}}{\text{Old Value}} \times 100\)

Calculation:

Percentage Increase = \(\dfrac{750 - 600}{600} \times 100\)

⇒ Percentage Increase = \(\dfrac{150}{600} \times 100\)

⇒ Percentage Increase = \(\dfrac{1}{4} \times 100\)

⇒ Percentage Increase = 25%

∴ The correct answer is option 3.

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