Question

List price of a cooler is Rs 2563. The rate of VAT is 10%. The customer requests the shopkeeper to allow a discount in the price of the cooler to such an extent that the price remains Rs 2563 inclusive of VAT. Find the descount in the price of the cooler.

Answer 1

\[\text { Let the reduced price of the cooler, excluding VAT, be Rs . x } . \]

\[\text { VAT = 10 % of Rs x = } \frac{10}{100} \times x\]

\[ =\text  {  Rs }. \frac{x}{10}\]

\[\text { Therefore, SP of the cooler will be = Rs } . \left( x + \frac{x}{10} \right) = Rs . \frac{11x}{10}\]

\[\text { But the SP is already given as Rs } . 2563 . \]

\[\text { So }, \]

\[2563 = \frac{11x}{10}\]

\[11x = 25630\]

\[x = \frac{25630}{11}\]

\[ = \text { Rs } . 2330\]

\[\text { Hence, discount allowed in the price of the cooler = Rs } . \left( 2563 - 2330 \right) = Rs . 233 .\]