a vacuum cleaner is marked to sell for Rs 12000 after 12% discount is given and then vat is added if the customer paid Rs 12144

Question

2 years ago

6

,what is the rate of vat

1 answer:

bonufazy [111] · Answer 1 · 2023-06-23T15:03:52+03:00

The rate of VAT on the vacuum cleaner is 15%

<h3>How to determine the rate of VAT?</h3>

The given parameters are:

Selling price = Rs 12000

Discount = 12%

Amount Paid = 12144

The amount paid is calculated as:

Amount Paid = Selling Price * (1 - Discount) * (1 + VAT)

So, we have

12144 = 12000 * (1 - 12%) * (1 + VAT)

Evaluate the difference

12144 = 12000 * 0.88 * (1 + VAT)

Evaluate the product

12144 = 10560 * (1 + VAT)

Divide both sides by 10560

1.15 = (1 + VAT)

Subtract 1 from both sides

VAT = 0.15

Express as percentage

VAT = 15%

Hence, the rate of VAT on the vacuum cleaner is 15%