Shikha purchased a car with a marked price of RS 210000 at a discount of 5%.

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.

Solution:

Marked price of the car $=$ Rs. $2,10,000$

$D$ iscount allowed $=5 \%$

Therefore, discount $=5 \%$ of Rs. $2,10,000=\frac{5}{100} \times 2,10,000=$ Rs. 10,500

So, $S$ hikha get $s$ a discount of Rs. 10,500 .

Therefore, cost of $t$ he car will be $=$ Marked price - Discount

Rs. $(2,10,000-10,500)$

$=$ Rs. $1,99,500$

VAT $=10 \%$ of $1,99,500$

$=\frac{10}{100} \times 199500$

$=$ Rs. 19,950

Thus, the a mount paid by Shikha to purchase the car $=$ Rs. $(1,99,500+19,950)$

$=$ Rs. $2,19,450$

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