Question:
List price of a washing machine is Rs 9000. If the dealer allows a discount of 5% on the cash payment, how much money will a customer pay to the dealer in cash, if the rate of VAT is 10%?
Solution:
List price of the washing machine $=$ Rs. 9000
Discount allowed $=5 \%$
Discount $=5 \%$ of Rs. 9000
$=\frac{5}{100} \times 9000=$ Rs. 450
So, the $c$ ost of the washing machine $=$ List price $-$ Discount
$=$ Rs. $(9000-450)$
$=$ Rs. 8550
VAT $=10 \%$ of Rs. 8550
$=\frac{10}{100} \times 8550$
$=$ Rs. 855
Thus, the customer has to pay $=$ Rs. $(8550+855)=$ Rs. 9405
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