Question

The marked price of an article is Rs.2080. After allowing d% discount and levying

Answer 1

Answer:

13%

Step-by-step explanation:

Given:

• MP = 2080
• Discount = d%
• VAT = (d-2)%
• Cost = 1997.84

Apply discount:

• 2080 - d% = 2080*(1 - 0.01d)

Add VAT:

• 2080*(1 - 0.01d) + (d - 2)%
• 2080*(1 - 0.01d) * (1 + (d -2)/100)
• 2080*(1 - 0.01d) * (0.98 + 0.01d) = 1997.84
• (1 - 0.01d)(0.98 + 0.01d) = 1997.84/2080
• 0.98 + 0.01d - 0.0098d - 0.0001d² = 0.9605
• - 0.0001d² + 0.0002d + 0.98- 0.9605 = 0
• 0.0001d²- 0.0002d - 0.0195 = 0
• d² - 2d + 195 = 0

Solving the quadratic equation we get:

• d = 15

Then

• VAT rate = 15 - 2 = 13%