Question

Tourists buys article at 15% discount on the marked price and he pays 5% vat. if the vat amounts to rs. 850, find the marked price and selling price including vat.

Answer 1

The marked price is Rs 17850 and the selling price is the Rs 12000 after including 5% VAT.

Here we are given the discount of 15% on the marked price .

5% value added tax (vat) is paid by the tourist for the article.

vat amount= Rs 850

vat is added to the actual value of the product that is the cost price that makes the list price (Price to be attached )

let us take 100% as the cost price.

when we add 5%(VAT) to the cost price it will become 100%+5%=105%

so as per the question 5%= Rs 850

so 105%= 17850

Now the discount is given of 15% for the article so we subtract discount from cost price .

100-15%=85%

MRP=17850

Selling Price = $\frac{85}{100}$x17850=12000

So  the marked Price = Rs 17850and Selling Price =Rs 12000.

You can find more about VAT :

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