Question
Download Solution PDFA shopkeeper allows a discount of 20% and then applies VAT of 15% on an item having a marked price of Rs. 2,000. At what price did he sell the item?
Answer (Detailed Solution Below)
Detailed Solution
Download Solution PDFGiven:
Marked price = Rs. 2000
Discount = 20 %
VAT = 15 %
Formula used:
SP after discount (SP1) = MP - (MP × D%)
SP after VAT = SP1 + (SP1 × VAT%)
Where, MP = Marked price and SP = Selling price
Calculation:
Selling price after discount = 2000 - (2000 × 20/100)
⇒ SP1 = 2000 - 400
⇒ SP1 = 1600
Now, SP after adding VAT
SP after VAT = 1600 + (1600 × 15/100)
⇒ SP after VAT = 1600 + 24000/100
⇒ SP after VAT = 1600 + 240 = 1840
∴ He sells the item at Rs. 1840
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