Final answer:
To find the VAT percentage, subtract the VAT from the total paid to find the original price, then divide the VAT by the original price and multiply by 100. The calculated VAT percentage is approximately 21.05%, so the closest answer option is b) 20%.
Step-by-step explanation:
The question asks us to determine the VAT percent a customer paid on an article. To find out the percentage, we divide the VAT amount by the original price of the article before VAT was added and then multiply by 100. The customer paid a total of Rs 6900, including a VAT of Rs 1200. Therefore, the price of the article before VAT was Rs 6900 - Rs 1200 = Rs 5700.
To calculate the VAT percentage, use the formula:
VAT percentage = (VAT amount / Price without VAT) x 100
Substitute the given values into the formula:
VAT percentage = (Rs 1200 / Rs 5700) x 100
VAT percentage = 0.2105 x 100
VAT percentage = 21.05%
The closest VAT percentage option to 21.05% is 20%, which is option b) 20%.