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Q.

Rakesh goes to a departmental store and purchases the cosmetics costing Rs. 150, VAT @ 10%. Calculate the total amount to be paid by Rakesh to the store.

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a

Rs.180

b

Rs.165

c

Rs.140

d

Rs.130 

answer is B.

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Detailed Solution

Given,
Cost price for cosmetics =Rs.150.
Rate of value-added tax =10.
Now,
Amount of value added tax= cost price×rate of value added tax 100 Rs.150×10 100 Rs.1500 100 Rs.15  
The total amount paid for cosmetics is Rs.150+Rs.15=Rs.165.
Hence, the amount paid is Rs.165
Therefore, option (2) is correct.
 
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