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Q.

Shikha purchased a car with a marked price of Rs. 210000 at a discount of 5%.   If VAT is charged at the rate of 10%,   find the amount Shikha had paid for purchasing the car.

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a

Rs.2164926

b

Rs.216450 

c

Rs.298450

d

Rs.297350

answer is D.

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Detailed Solution

Given marked price=Rs.210000,
Discount of marked price = 5% ,
Rate of value added tax = 10%.
We know,
Marked price×Rate of dicount 100 = Rs.210000×5 100 Rs.1050000 100 Rs.10500   Therefore,
Cost of the car price =Marked priceDiscount price Rs.210000Rs.10500 Rs.199500  
Amount of value added tax= Cost price×Rate of value added tax 100 Rs.199500×10 100               Cost price=Rs.199500 Rs.1995000 100 Rs.19950  
The total amount for purchasing the car =Rs.199500+Rs.19950
 Rs.219450
Hence, the amount that Shikha had paid for purchasing the car is Rs.216450.
Therefore, option (4) is correct.
 
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