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.
Solution:
Given,
SP of the pair of shoes $=$ Rs. 175
VAT $=7 \%$
Therefore, VAT $=7 \%$ of Rs. 175
$=\frac{7}{100} \times 175$
$=$ Rs. $12.25$
So, 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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