Question:
Swarna paid Rs 20 as VAT on a pair of shoes worth Rs 250. Find the rate of VAT.
Solution:
Given,
Amount paid by Swarna for a pair of shoes $=R s .250$
VAT paid by her $=$ Rs. 20
Let the rate of VAT be $x \%$
Then,
$x \%$ of $250=20$
$\frac{x}{100} \times 250=20$
$2.5 x=20$
$x=8$
Thus, Swarna paid $8 \%$ VAT on the pair of shoes.