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Q.

Sarita buys goods worth Rs. 5500. She gets a rebate of 5%   on it. After getting the rebate if VAT at the rate of 5%   is charged, find the amount she will have to pay for the goods.

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a

Rs.5886.25

b

Rs.5476.25

c

Rs.5486.25

d

Rs.5497.25 

answer is A.

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Detailed Solution

Given, selling price=Rs.5500 rate of value added tax of 5% .
Amount of value added tax= selling price×rate of value added tax  100  
Amount of rebate= selling price×rate of rebate  100 Rs.5500×5 100 Rs.27500 100 Rs.275  
Therefore, the new cost is Rs.5500- Rs.275 = Rs.5225.
Question Image Thus, the total amount to be paid is Rs.5225 + Rs.261.25 = Rs.5486.25.
Hence, the amount that she will pay for the goods is Rs.5486.25.
Therefore, option (1) is correct.
 
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