Question

On goods marked \[Rs.900\] the shopkeeper gives a discount of \[5\% \] . If the rate of VAT is \[10\% \] how much money does the customer have to pay?

Answer 1

Hint: This question involves the arithmetic operations like addition/ subtraction/ multiplication/ division. Also, we need to know how to convert the percentage term into fraction terms and fraction terms into decimal terms. We need to know how to find \[5\% \] of \[Rs.900\] making the easy calculation of these types of questions.

Complete step by step solution:
In this question, we have the given details,
 \[ \to \] The total price of the goods is \[Rs.900\]
 \[ \to \] The total discount is \[5\% \]
 \[ \to \] The rate of VAT is \[10\% \]
We would find how much money customer have to pay with the discounts and VAT
First, we want to find the amount with the \[5\% \] discount \[Rs.900\] .
We know that \[5\% \] can also be written as,
 \[5\% = \dfrac{1}{{100}} \times 5 = 0.05\]
So, we get
 \[5\% \] Of \[Rs.900\] is \[ = 900 \times 5\% = 900 \times 0.05 = Rs.45\]
So, we have to reduce \[Rs.45\] from \[Rs.900\] . So, we get
The total amount with the use of discount \[ = Rs.900 - Rs.45 = Rs.855\]
Next, we have to add VAT \[10\% \] with the total amount with the use of a discount.
 \[10\% \] Can be written as,
 \[10\% = \dfrac{1}{{100}} \times 10 = 0.1\]
So, we get
 \[10\% \] Of \[Rs.855\] is \[ = Rs.855 \times 10\% = Rs.855 \times 0.1 = Rs.85.5\]
So, the total amount customer have to pay with the use of discount and including VAT is,
 \[ \Rightarrow Rs.855 + Rs.85.5 = Rs.940.5\]
So, the final answer is,
The customer has to pay \[Rs.940.5\] including all taxes and discounts.
So, the correct answer is “ \[Rs.940.5\] ”.

Note: Note that the discounts to be subtracted with the price of the goods and the taxes like VAT should be added with the amount. Also, note that if any values are in percentage we can convert the term into decimal form by multiplying the percentage term with \[0.01\] . The final amount should be included with all discounts and taxes.