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Question

Rani purchases a pair of shoes whose sale price is Rs 175. If she pays VAT at the rate of 7%, how much amount does she poy as VAT? Also, find the net value of the pair of shoes.

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Solution

Given,SP of the pair of shoes = Rs. 175VAT=7%Therefore, VAT=7% of Rs. 175=7100×175=Rs. 12.25So, Rani has to pay Rs. 12.25 as VAT.The net value of the pair of shoes=Rs. 175+Rs. 12.25=Rs. 187.25

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