Reena goes to a shop to buy a radio costing Rs. 2,568. The rate of VAT is $7 %$ . She tells the shopkeeper to reduce the price of the radio such that she has to pay Rs. 2,568 inclusive of VAT. Find the reduction needed in the price of radio.

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Solution

Price of radio inclusive of VAT = Rs. 2,568
Rate of VAT $= 7 %$
$∴$ Actual price $= R s . \frac{2, 568 \times 100}{100 + 7}$
$= R s . \frac{2, 568 \times 100}{107} = R s . 2, 400$
But the cost of radio in the beginning
=Rs. 2,568
$∴$ Reduction = Rs. 2568 - Rs. 2400 = Rs. 168

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Reena goes to a shop to buy a radio costing Rs. 2,568. The rate of VAT is 7%. She tells the shopkeeper to reduce the price of the radio such that she has to pay Rs. 2,568 inclusive of VAT. Find the reduction needed in the price of radio.

Price of radio inclusive of VAT = Rs. 2,568 Rate of VAT =7% ∴ Actual price =Rs.2,568×100100+7 =Rs.2,568×100107=Rs.2,400 But the cost of radio in the beginning =Rs. 2,568 ∴ Reduction = Rs. 2568 - Rs. 2400 = Rs. 168

Reena goes to a shop to buy a radio costing Rs. 2,568. The rate of VAT is $7 %$ . She tells the shopkeeper to reduce the price of the radio such that she has to pay Rs. 2,568 inclusive of VAT. Find the reduction needed in the price of radio.

Price of radio inclusive of VAT = Rs. 2,568
Rate of VAT $= 7 %$
$∴$ Actual price $= R s . \frac{2, 568 \times 100}{100 + 7}$
$= R s . \frac{2, 568 \times 100}{107} = R s . 2, 400$
But the cost of radio in the beginning
=Rs. 2,568
$∴$ Reduction = Rs. 2568 - Rs. 2400 = Rs. 168