Question:
Shikha purchased a car with a marked price of RS 210000 at a discount of 5%. If VAT is charged at the rate of 10%, find the amount Shikha had paid for purchasing the car.
Solution:
Marked price of the car $=$ Rs. $2,10,000$
$D$ iscount allowed $=5 \%$
Therefore, discount $=5 \%$ of Rs. $2,10,000=\frac{5}{100} \times 2,10,000=$ Rs. 10,500
So, $S$ hikha get $s$ a discount of Rs. 10,500 .
Therefore, cost of $t$ he car will be $=$ Marked price - Discount
Rs. $(2,10,000-10,500)$
$=$ Rs. $1,99,500$
VAT $=10 \%$ of $1,99,500$
$=\frac{10}{100} \times 199500$
$=$ Rs. 19,950
Thus, the a mount paid by Shikha to purchase the car $=$ Rs. $(1,99,500+19,950)$
$=$ Rs. $2,19,450$