Question

Shikha purchased a car with a marked price of Rs. 210000 at a discount of 5%. If VAT is charged at the rate of 10%, find the amount Shikha had paid for purchasing the car.

Answer 1

Given,

Marked price = Rs 210000

Discount = 5%

\(\frac{M.P.-S.P.}{M.P.}\) = \(\frac{5}{100}\)

S.P. = M.P.\((1-\frac{5}{100})\)

S.P. = \(\frac{95}{100}\)x 210000

S.P. = 199500

VAT = 10% on S.P.

= \(\frac{10}{100}\)x 199500 = 19950

Total cost Shikha has to pay for purchasing the Car = 199500 + 19950 = 219450 Rs