Question:
The list price of a refrigerator is Rs 9700. If a value added tax of 6% is to be charged on it, how much one has to pay to buy the refrigerator?
Solution:
List price of the refrigerator $=$ Rs. 9700
VAT $=6 \%$
So, $\mathrm{VAT}=6 \%$ of Rs. 9700
$=$ Rs. $\frac{6}{100} \times 9700$
$=$ Rs. 582
So, the total amount one has to pay $=$ Rs. $9700+$ Rs. 582
$=$ Rs. 10,282