Final answer:
To determine the marked price of the watch, an algebraic equation factoring in discount and VAT must be solved. The current VAT rate of Nepal must be used as a decimal in the equation. The final cost after these adjustments is given as Rs.904.
Step-by-step explanation:
To calculate the marked price of the watch after accounting for the discount and VAT (Value-Added Tax), we must first understand that the final cost is the result of these two factors being applied to the original marked price. The VAT rate for Nepal will be represented as V percent, and the discount offered is d percent. If we let P represent the marked price, after the discount of d percent is applied, the price becomes P(1 - d/100). Then, VAT is added to that discounted price, making the final price P(1 - d/100)(1 + V/100) = Rs.904.
The task is to solve for P. Let's assume the current VAT rate in Nepal is x percent, which we need to convert into a decimal by dividing by 100. The problem can now be approached as an algebraic equation which can be solved for P. It bears noting that when calculating sales tax for multiple items, such as the total cost of $20.98 for items priced at $8.99 and $11.99, one would convert the tax rate to a decimal and multiply it by the total cost to find the amount of sales tax.