Question

A foreigner bought an article at a discount of 15% and paid rupees 17,289 including a 13% VAT. What was the Manufacturer's Price (MP) of the article?

A) Rupees 20,400
B) Rupees 21,200
C) Rupees 22,000
D) Rupees 23,500

Answer 1

To find the Manufacturer's Price (MP) of the article after a discount and VAT, we can work backwards from the final price paid by the foreigner. By setting up an equation, we can solve for the MP and find that it is approximately rupees 18,000.

Step-by-step explanation:

To find the Manufacturer's Price (MP) of the article, we need to work backwards from the final price the foreigner paid, including the discount and VAT.

Let the MP be x.

Discount = 15% of x = 0.15x

After the discount, the price will be x - 0.15x = 0.85x

Now, including the 13% VAT, the price becomes:

0.85x + (13/100)(0.85x) = 0.85x + 0.1105x = 0.9605x

Given that the final price paid by the foreigner is rupees 17,289, we can write the equation:

0.9605x = 17,289

Dividing both sides by 0.9605, we get:

x = 17,289/0.9605

x ≈ 18,000

Therefore, the Manufacturer's Price (MP) of the article is approximately rupees 18,000.

Answer 2

First, calculate the price before VAT by dividing the price paid by 1.13 to remove the added 13%, finding the price the foreigner paid before taxes. Then, divide this result by 0.85 to account for the 15% discount and find the Manufacturer's Price (MP). Based on the calculations, the MP should be 18,000 rupees, but this does not match any of the given choices.

Step-by-step explanation:

To find the Manufacturer's Price (MP) of the article that the foreigner bought, we need to work backwards from the price they paid, accounting for VAT and the discount given. The foreigner paid 17,289 rupees, which includes a 13% VAT. We, therefore, first need to calculate the price before VAT, which we'll call PV, and then find the original price before the discount, which we'll call MP.

1. First, we calculate the price before VAT by dividing the total paid by 1.13 (since 13% VAT means the price is 113% or 1.13 times the price before VAT).
2. Then, we divide this price by 0.85 (since there was a 15% discount, the price paid is 85% or 0.85 times the MP).

Let's perform the calculations:

PV = 17,289 rupees / 1.13 = 15,300 rupees

MP = PV / 0.85 = 15,300 rupees / 0.85 = 18,000 rupees

However, none of the given options match our calculated MP. This discrepancy might be due to a miscalculation or a typo in the provided options. Based on the correct calculations and given information, we are unable to match the MP to any provided choice.