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Allowing a 10% discount on the MP of a radio, 13% VAT was levied and sold. If the difference between the selling price with VAT and SP after discount is 1170, find MP.

A. 9000
B. 9500
C. 10000
D. 10500

1 Answer

7 votes

Final answer:

To find the Market Price of a radio after a 10% discount and 13% VAT were applied, we set up the expression 1.017x - 0.9x = 1170 and solve for x. The Market Price is determined to be 10000.

Step-by-step explanation:

To find the Market Price (MP) of a radio that was sold after allowing a 10% discount and adding 13% Value Added Tax (VAT). The difference between the selling price with VAT and the selling price after discount is given as 1170.

First, let us assume that the MP of the radio is x. After a 10% discount, the selling price becomes 0.9x (since discount is 10% of MP, therefore selling price is 90% of MP). After this, a 13% VAT is added to the discounted price, making the final selling price (1 + 0.13)×0.9x = 1.017x. The difference between the selling price with VAT and the selling price after discount is 1170, so we have:

1.017x - 0.9x = 1170

This simplifies to:

0.117x = 1170

Dividing both sides by 0.117, we find:

x = 1170 / 0.117 = 10000

Therefore, the MP of the radio is 10000, which corresponds to option C.

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