Question

Amit goes to a shop to buy a washing machine. The marked price of the washing machine is Rs. 10900 excluding 9% VAT. Amit bargains with the shopkeeper and convinces him for Rs. 10900 including VAT as the final cost of the washing machine. Find the amount reduced by the shopkeeper.

Answer 1

It is given that

M.P. of washing machine $=Rs.10900$

Rate of VAT $=9$%

Consider Rs. $x$ as the reduced price of machine

We know that

VAT at the rate of $9\%=x\times 9/100=Rs.9x/100$

So the amount paid $=x+9x/100=109x/100$

By equating the values

$109x/100=10900$

By further calculation

$x=(10900\times 100)/109$

$x=10000$

Amount reduced by the shopkeeper $=10900–10000$

$=Rs.900$

Therefore, the amount reduced by the shopkeeper is $Rs.900.$