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Question
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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Solution
\[\text { Marked price of the car = Rs } . 2, 10, 000\]
\[\text { Discount allowed = 5 % } \]
\[\text { Therefore, discount = 5 % of Rs . 2, 10, 000 } = \frac{5}{100} \times 2, 10, 000 =\text { Rs } . 10, 500\]
\[\text { So, Shikha gets a discount of Rs } . 10, 500 . \]
\[\text { Therefore, cost of the car will be = Marked price - Discount }\]
\[\text { Rs } . ( 2, 10, 000 - 10, 500)\]
\[ =\text { Rs } . 1, 99, 500\]
\[\text { VAT = 10 % of } 1, 99, 500\]
\[ = \frac{10}{100} \times 199500\]
\[ = \text { Rs } . 19, 950\]
\[\text { Thus, the amount paid by Shikha to purchase the car = Rs } . \left( 1, 99, 500 + 19, 950 \right)\]
\[ = \text { Rs}. 2, 19, 450\]
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