A shopkeeper bought a few number of pairs of shoes at Rs 3000 per pair. At what profit percent did he/she sell each pair of shoes, if a customer paid Rs 4,407 with 13% VAT?

Answer: 30%

Note: VAT Amount is paid to the government. So, a seller doesn't include VAT in the profit earnt.

Solution:

For a pair of shoes,

Cost Price (CP) = Rs 3000

Selling Price with VAT (SP with VAT) = Rs 4407

VAT percentage (VAT%) = 13%

To find: Profit Percentage (P%) = ?

We know,

$SP = \dfrac{SP with VAT}{ 1 + \frac{VAT%}{100} } $

$or, SP = \dfrac{4407}{1 + \frac{13}{100} }$

$or, SP = \dfrac{4407}{\frac{113}{100}}$

$or, SP = 4407 × \dfrac{100}{113}$

$\therefore SP = Rs 3900$

Now,

$P% = \dfrac{SP - CP}{CP} × 100%$

$P% = \dfrac{3900-3000}{3000} × 100%$

$P% = \dfrac{900}{30}%$

$\therefore P% = 30%$

Hence,

The required profit percentage in the sell of a pair of shoes is 30% of the cost price.

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