VAT and Discount

Here we are going to solve a question related to VAT and Discount of Basic Level Examination which is asked in question number 17 in BLE. 

Q1) The marked price of a mobile set is Rs. 12,500. What will be the price of the mobile set, if 13% VAT is added after allowing 10% discount.

Solⁿ:

Here,          Marked Price (Mp) = Rs.12,500

                   VAT = 13%

                   Discount = 10%

                   SP with VAT = ?

Now,

SP after Discount = Mp – D% of Mp

                              = 12500 - (10/100)*12500

                              = 12500 – 1250

                              = 11,250

Again,

SP with VAT = SP + VAT% of SP

                     = 11250 - (13/100)*11250

                     = 11250 - 1462.5

                     = Rs. 12712.5

Therefore, the price of a mobile set is Rs. 12,712.5

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