**Question:**

Rani purchases a pair of shoes whose sale price is Rs 175. If she pays VAT at the rate of 7%, how much amount does she poy as VAT? Also, find the net value of the pair of shoes.

**Solution:**

Given,

SP of the pair of shoes $=$ Rs. 175

VAT $=7 \%$

Therefore, VAT $=7 \%$ of Rs. 175

$=\frac{7}{100} \times 175$

$=$ Rs. $12.25$

So, Rani has to pay Rs. $12.25$ as VAT.

The net value of the pair of shoes $=$ Rs. $175+$ Rs. $12.25$

$=$ Rs. $187.25$