Question

List price of a cooler is Rs. 2563. The rate of VAT is $10\%$. The customer requests the shopkeeper to allow a discount in the price of the cooler to such an extent that the price remains Rs. 2,563 inclusive of VAT. Find the discount in the price of the cooler.

Answer 1

List price of cooler = Rs. 2563
On request the price of cooler is paid Rs. 2563 including VAT
VAT $=10\%$
Cost price $=Rs.\frac{2563\times 100}{100+VAT\%}$
$=Rs.\frac{2563\times 100}{100+10}=Rs.\frac{2563\times 100}{110}$
=Rs. 2330
$\therefore$ Amount of discount = Rs. 2563 - Rs. 2330
= Rs. 233