Laxman went to a shop to buy a fan costing $750$. The rate of sales tax is $6%$. He requests the shopkeeper to reduce the price to such an extent that he has to pay only $742$ including the sales tax. Find the reduction needed in the price of the fan.

Given
The cost of fan = ₹$750$
The rate of sales tax = $6%$
Calculation,
Let, the reduced price of fan be$y$
Total amount of the fan $=y+6%$of$y$
$=1y+\left( 6/100 \right)y$
$=106y/100$
But, the total amount of the fan to be paid = ₹ 742
Then, $106y/100=$₹$742$
$y=(742\times 100)/106$
$y=74,200/106$
$y=700$
$\therefore $ Reduction needed $=750-700=50$