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