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Rena goes to a shop to buy a radio, costing Rs. 2568. The rate of VAT is $7 %$ . She tells the shopkeeper to reduce the price of the radio such that she has to pay Rs. 2568, inclusive of VAT. Find the reduction needed in the price of radio.

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Rs.381

Rs.168

Rs.287

Rs.342

answer is B.

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Detailed Solution

Given,
Selling price=Rs.2568
Rate of value added tax = 7%
Let the reduced price excluding value-added tax of the ratio be Rs. X .
Therefore,

reduced price × rate of tax 100 = X × 7 100 ⇒ 7 X 100 ⇒ Rs .0 .07 X

Reduced price = Selling price − Value added tax ⇒ Rs . X = Rs .2568 − Rs .0 .07 X Reduced price = Rs . X ⇒ Rs .1 .07 X = Rs .2568 ⇒ X = 2568 1.07 ⇒ X = Rs .2400

Thus, the reduction in price is Rs.2568-Rs.2400 = Rs.168.
So, the reduced price of the radio is Rs.168.
Therefore, option (2) is correct.

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