Question

B) The marked price of a bicycle is Rs. 2000. If the shopkeeper allows some discount and a customer bought it for Rs. 1921 including 13% VAT, how much amount was given as the dis

count?
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Answer 1

Rs. 300

Explanation:

The bicycle marked price = Rs. 2000

The amount the customer bought the bike given that there was some discount allowed by the shopkeeper including VAT = Rs. 1921

The VAT applied = 13%

The amount given as the discount = Required

The VAT is applied to the selling price

Let d represent the discount amount, we have;

The selling price = 2000 - d

The amount paid as VAT = (2,000 - d) × 13% = (2,000 - d) × 0.13

The amount the customer bought it including VAT = The selling price + The amount paid as VAT

The amount the customer bought it including VAT = Rs. 1921

∴ 1921 = 2000 - d + (2,000 - d) × 0.13 = 2,260 - 1.13·d

1.13·d = 2,260 - 1,921 = 339

d = 339/1.13 = 300

The amount given as discount, d = Rs. 300