Question

List price of a cooler is Rs. 2563. The rate of VAT is 10%. The customer requests the shopkeeper to allow a discount in the price of the cooler to such an extent that the price remains Rs. 2563 inclusive of VAT. Find the discount in the price of the cooler.

Answer 1

Given,

Cost of the cooler is = Rs 2563

VAT = 10%

Let the reduced price of the radio after discount be Rs x.

Then,

VAT = 10% of x = Rs 10x/100

So, SP = Rs (x+10x/100) = Rs 110x/100

It is given that the selling price should be Rs 2563

110x/100 = 2563

110x = 2563 × 100

x = 256300/110

= 2330

Reduced price of the cooler after discount = Rs 2330

∴ Discount needed in the price of the cooler is Rs (2563 – 2330) = Rs 233