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Rani purchases a pair of shoes whose sale price is Rs. 175. If she pays VAT at the rate of $7 %$ , how much amount does she pay as VAT? Also, find the net value of the pair of shoes.

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Rs.197.75

Rs.127.50

Rs.137.25

Rs.187.25

answer is D.

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Detailed Solution

Given selling price=Rs.175.
Rate of value added tax = 7%.
Now,

Selling price × Rate of tax 100 = 175 × 7 100 ⇒ 1225100 ⇒ Rs .12 .25

Now, total price is,

Total price = Selling price + Amount of value added tax ⇒ Rs .175+Rs .12 .25 ⇒ Rs .187 .25

The amount she pay as VAT is Rs.12.25
Thus, the net value of the pair of the shoes is Rs.187.25.
Therefore, option (4) is correct.

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