Answer:
The amount of discount is Rs.5,000
Explanation:
The given parameters are;
The amount the shopkeeper sold her goods = Rs. 16,950
The percentage discount allowed = 25%
The VAT included in the sale = 13%
Therefore, we have;
Sale amount = Discounted price + VAT percentage × Discounted price
Discounted price = (100 - Percentage discount)/100×Display price
Sale amount = The amount the shopkeeper sold her goods = Rs. 16,950
Let the display price = X;
We have;
Discounted price = (100 - 25)/100×X = 0.75·X
Therefore;
Sale amount = 0.75·X+ 13/100 × 0.75·X
Rs. 16,9504 = 0.8475·X
X = Rs. 16,950/0.8475 = Rs.20,000
Therefore, the display price = Rs.20,000
The amount of discount = Percentage discount × Display price
The amount of discount = 25/100 × Rs.20,000 = Rs.5,000
The amount of discount = Rs.5,000.