 Hello and welcome to the session. In this session we are going to discuss how to find the amount of sales when both tax amount and tax rate are known and we will also find the rate of return when the amount of return and the investment are known. First of all let us discuss how to find the amount of sales when tax amount and tax rate are known. Now let us see what is sales tax? It is a tax levied by the government at the point of sale on retained goods and services. It is collected by the retailer and passed on to the state. The government of every state wants money to meet the expenses on administrative work etc. and to perform its social welfare schemes. Now we are going to discuss computation of sales tax. It is very easy to calculate the sales tax as it involves only the concept of percentage. The rate of sales tax depends on the nature of items purchased and are different for different items. Sales tax is calculated on sale price. Sales tax is given by sale price into rate of sales tax whole upon 100 and rate of sales tax is given by sales tax upon sale price into 100%. Total price paid by the customer including sales tax is given by sale price plus sales tax. Let us consider an example. Samantha bought her dress for $40. If sales tax rate is 5.5% then how much sales tax is being charged? What is the total cost of the dress including tax? Let us start with its solution. Here price of the new dress is given as $40 and rate of sales tax is given as 5.5%. We know that sales tax is equal to rate of sales tax into sale price whole upon 100. Now substituting the values here we get sales tax is equal to 5.5 into $40 upon 100. Now this is equal to 4 into $0.55 and this is equal to $2.2. Thus we get sales tax as $2.2. Now we know that the total price paid by the customer including sales tax is given by sale price plus sales tax. So total price of the dress including sales tax will be equal to sale price that is $40 plus sales tax that is $2.2. And this is equal to $42.2. So total price of the dress including sales tax is given by $42.2. Now let us discuss how to find the rate of return when the amount of return and the investment are known. Rate of return is a widely used measure to compare the effectiveness of IT system investments. To calculate rate of return we divide the net return from an investment by the cost of investment and express this as a percentage. So rate of return will be given by return minus cost of investment whole upon cost of investment into 100%. It is also known as rate of profit or return on investment. The return is also known as money gained or lost in an investment, net income or loss. The cost of investment is also known as investment, capital, principal etc. Let us discuss an example. You invest $200 in stock one year later your investment is $220. What is the rate of return of your investment? We know that rate of return is given by return minus cost of investment whole upon cost of investment into 100%. Now here cost of investment is given as $200 and return is given as $220. Now substituting these values here in this formula we get rate of return is equal to $220 minus $200 whole upon $200 into 100%. And this is equal to $20 upon $200 into 100% and this is equal to 10%. Thus the rate of return of your investment is 10%. Thus in this session we have learnt how to find the amount of sales when tax amount and tax rate are known. Also we have discussed how to find the rate of return when the amount of return and the investment are known. This completes our session. Hope you enjoyed this session.