Question

A tourist bought a Nepali cap with 20% discount and 13% value added tax when returning to his country the VAT amount Rs. 83.20 returned back to home at the airport. What was the marked price of the cap? Find it

Answer 1

Marked price = Rs 800

Explanation:

Let the marked price of the cap be Rs.“x”.

Discount = 20%

VAT = 13%

VAT amount = Rs. 83.20

We know,

Discount = Marked price – Selling Price

⇒ Selling price = Marked price – discount

The price after giving a discount or Selling price:

`= x - 20 \% \ of \ x \\\\= x - (20)/(100) * x\\\\=(100x - 20x )/(100)\\\\=(80x)/(100)\\\\=(8x )/(10)\\\\=(4x)/(5)`

VAT amount = VAT% of Selling Price

`83.20 = 13 \% \ of \ (4x)/(5)\\\\83.20 = (13)/(100) * (4x)/(5)\\\\13 * 4x = 83.20 * 100 * 5\\\\4x = (8320 * 5)/(13)\\\\4x = 3200\\\\x = 800`

Thus, the marked price of the cap is Rs. 800.