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Llana [10]
3 years ago
8

After allowing 20% discount an article is sold for rs.672 levying 12% VAT, find its market price​

Mathematics
2 answers:
Svetlanka [38]3 years ago
7 0

The Market Price of the product is RS. 750.

The Market Price is calculated by dividing the components associated to Discount, which is less than 1, and the Value Added Tax, which more than 1, to the Resulting Price.

c_{M} = \frac{c_{R}}{\left(1-\frac{r_{D}}{100} \right)\cdot \left(1+\frac{r_{T}}{100} \right)} (1)

Where:

c_{M} - Market price, in monetary units.

c_{R} - Resulting price, in monetary units.

r_{D} - Discount rate, in percentage.

r_{T} - Tax rate, in percentage.

If we know that c_{R} = 672, r_{D} = 20 and r_{T} = 12, then the market price is:

c_{M} = \frac{672}{\left(1-\frac{20}{100} \right)\cdot \left(1+\frac{12}{100} \right)}

c_{M} = 750

The market price of the product is RS. 750.

IceJOKER [234]3 years ago
5 0

The market price is Rs. 750 which was obtained by creating a mathematical relationship from the given parameters.

PERCENTAGE DISCOUNT = 20%

VAT LEVIED= 12%

PRICE SOLD = 672

Let the MARKET PRICE = m

Hence,

market price * (1 - discount) * (1 + VAT) = price sold

m * (1 - 20%) * (1 + 12%) = 672

m * (1 - 0.2) * (1 + 0.12) = 672

m * 0.8 * 1.12 = 672

0.896m = 672

m = 672 / 0.896

m = Rs. 750

Learn more :

brainly.com/question/20418815

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