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Question

Amit purchases a motorcycle, having marked price Rs. 46000 at a discount of 5%. If VAT is charged at the rate of 10%, find the amount Amit has paid to purchase the motorcycle. [4 MARKS]

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Solution

Concept : 1 Mark
Application : 1 Mark
Calculation : 2 Marks

Marked price of motorcycle = Rs 46000

Discount =5% of Rs 46000
=Rs(5100×46000)=Rs 2300

Net price of motorcycle = Rs. 46000 - Rs. 2300 = Rs. 43700

VAT =10% of Rs 43700=Rs(10100×43700)=Rs 4370

S.P. of motorcycle = Rs (43700 + 4370) = Rs 48070

Hence, Amit has paid Rs 48070 to purchase the motorcycle.

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