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 2563 inclusive of VAT. Find the descount in the price of the cooler.
Solution:
Let the reduced price of the cooler, excluding VAT, be Rs. $x$.
VAT $=10 \%$ of Rs $x=\frac{10}{100} \times x$
$=R s . \frac{x}{10}$
Therefore, SP of the cooler will be $=$ Rs. $\left(x+\frac{x}{10}\right)=$ Rs. $\frac{11 x}{10}$
But the SP is already given as Rs. 2563 .
So,
$2563=\frac{11 x}{10}$
$11 x=25630$
$x=\frac{25630}{11}$
$=$ Rs. 2330
Hence, $d$ iscount allowed in the price of the cooler $=$ Rs. $(2563-2330)=$ Rs. 233 .