Question

Sarita buys goods worth Rs 5500. She gets a rebate of 5% on it. After getting the rebate if VAT at the rate of 5% is charged, find the amount she will have to pay for the goods.

Answer 1

$$\begin{gathered} \mathrm{Price}\mathrm{after}\mathrm{getting}\mathrm{a}\mathrm{rebate}\text{of}5\%\mathrm{on}\text{Rs}5500=5\%\mathrm{of}5500 \\ =\frac{5}{100}\times 5500 \\ =\mathrm{Rs}275 \\ \therefore \mathrm{new}\mathrm{cost}=\mathrm{Rs}(5500-275)=\mathrm{Rs}5225 \\ \mathrm{Now}, \\ \mathrm{VAT}=5\%\mathrm{of}5225 \\ =\frac{5}{100}\times 5225 \\ =\mathrm{Rs}261.25 \\ \therefore \text{a}\mathrm{mount}\mathrm{to}\mathrm{be}\mathrm{paid}\mathrm{for}\mathrm{the}\mathrm{goods}=\mathrm{Rs}(5225+261.25) \\ =\mathrm{Rs}5486.25 \end{gathered}$$