Question

The marked price of a computer is Rs. 60000. If allowing a% discount on the marked price and adding a% VAT, the price of the computer will be Rs. 58986. Find the rate of VAT.​

Answer 1

The problem can be solved using algebra. Let's say the discount rate is x, then the price after discount is:

60000 (1 - x/100)

The price after VAT is:

60000 (1 - x/100) (1 + y/100) = 58986

Where y is the rate of VAT.

Rearranging the equation we get:

(1 - x/100) (1 + y/100) = 58986/60000

Multiply both sides by 100 to get rid of the fractions:

100 (1 - x/100) (1 + y/100) = 981

Expanding and grouping like terms, we get:

100 - x + 100y - xy = 981

We can see that x is in two terms, so we can move one side of the equation and get:

100 - x + 100y = 981 + x

x = (981 + x - 100 + 100y)/100 = (981 + xy - 100y)/100

Now we have x in only one term and we know the value of x is 10%, so we can substitute it:

10 + 10y = 9.81

Solving for y we can find that y = 0.81 or 81%

So the VAT rate is 81%