A trader purchased a laptop for Rs 45,000 and marked its price to make 24% profit. If he/she sold it for Rs 63,054 with VAT, calculate the rate of VAT.

Answer: 13%

Solution:

In a trade of a laptop,

Cost Price (CP) = Rs 45,000

Profit Percentage (P%) = 24%

Selling Price with VAT (SP with VAT) = Rs 63,054

To Find: rate of VAT (VAT%) = ?

We know,

Selling Price (SP) = $CP( 1 + \frac{P%}{100} )$

And,

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

From above two formulae, we get,

SP with VAT = $CP(1 + \frac{P%}{100}(1 + \frac{VAT%}{100}$

$or, 63054 = CP(1+ \frac{24}{100} ) ( 1 + \frac{VAT%}{100}$

$or, 63054 = 45000 × \frac{124}{100}× \frac{100 + VAT%}{100}$

$or, \dfrac{63054 × 100 × 100}{45000 × 124} = 100 + VAT%$

$or, 113 = 100 + VAT%$

$or, VAT% = 113 - 100$

$\therefore VAT% = 13%$

Hence, the required rate of VAT levied on the selling price of that laptop is 13%.

#SciPiPupil