The marked price of a lady bag is Rs 4,800. If a customer is given 10% discount, how much does he/she pay with 15% VAT?

Answer: Rs 4968

Solution:

For a lady bag,

Marked Price (MP) = Rs 4800

Discount percentage (d%) = 10%

VAT percentage (VAT%) = 15%

To find: Selling Price with VAT (SP with VAT) = ?

We know,

SP = $MP ( 1 - \frac{d%}{100})$

Also,

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

From above two formulae, we get,

SP with VAT = $MP(1 - \frac{d%}{100})(1 + \frac{VAT%}{100}$

$= MP ( 1 - \frac{10}{100})(1 + \frac{15}{100})$

$= MP × \dfrac{100-10}{100} × \dfrac{100+15}{100}$

$= 4800 × \dfrac{90}{100} × \dfrac{113}{100}$

$= \dfrac{48 × 9 × 115}{10}$

$= Rs 4968$

Hence, the required selling price of the lady bag including VAT after discount is Rs 4968.

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