VAT and Discount || Find the Marked Price
Q1) After allowing 20% discount on the marked price of an article 15% VAT was levied on it. If the watch was sold for Rs. 6900, Calculate the marked price of the watch.
Solution:
Here,
SP With VAT = Rs. 6900
Discount = 20%
VAT = 15%
Marked Price (MP) = ?
Now,
Let MP be Rs.x
SP after Discount = MP-Discount% of MP
or, x - (20/100 * x)
or, x - x/5
(5x-x)/5
4x/5
Again,
SP With VAT = SP + VAT% of SP
6900 = 4x/5 + 15/100 * 4x/5
6900 = 4x/5 + 3x/25
6900 = (20x + 3x)/25
6900 * 25 = 23x
x = 172500/23
x = 7500
Therefore, the marked price of the watch is Rs. 7500
