Question

A shopkeeper allows 20 % discount on the marked price of an article and 10 % VAT is leavied on it . If a customer pays Rs 5000 for VAT them find the discount amount.​

Answer 1

Rs 12,500

Explanation:

the price before VAT = 100/10 × Rs 5000 =

Rs 50,000

the price before discount = 50,000 / 80%

= 50,000/0.8 = 62,500

so the discount amount = 62,500-50,000

= Rs 12,500