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"An article costing Rs. 900 is sold, levying 13% VAT. The customer pays:"

a) Rs. 1017

b) Rs. 927

c) Rs. 1017

d) Rs. 828

User Jenny M
by
8.4k points

1 Answer

4 votes

Final answer:

To calculate the total amount the customer pays for the article costing Rs. 900 with a 13% VAT, multiply the price by the VAT rate in decimal form (0.13) and add the result to the original price. The customer pays a total of Rs. 1017.

Step-by-step explanation:

To find the total amount the customer pays for an article costing Rs. 900 with a 13% VAT, you need to calculate the tax amount and add it to the original price. To convert the percentage to a decimal form, you would divide the VAT rate by 100. In this case, 13% becomes 0.13. Now, multiply the original price by the decimal VAT rate:


900 × 0.13 = Rs. 117

Next, add the VAT amount to the original price:


900 + 117 = Rs. 1017

The customer will pay a total of Rs. 1017, therefore the correct answer is: a) Rs. 1017

User Tushar Aggarwal
by
8.2k points