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Question
List price of a cooler is Rs 2563. The rate of VAT is 10%. The customer requests the shopkeeper to allow a discount in the price of the cooler to such an extent that the price remains Rs 2563 inclusive of VAT. Find the descount in the price of the cooler.
Solution
\[\text { Let the reduced price of the cooler, excluding VAT, be Rs . x } . \]
\[\text { VAT = 10 % of Rs x = } \frac{10}{100} \times x\]
\[ =\text { Rs }. \frac{x}{10}\]
\[\text { Therefore, SP of the cooler will be = Rs } . \left( x + \frac{x}{10} \right) = Rs . \frac{11x}{10}\]
\[\text { But the SP is already given as Rs } . 2563 . \]
\[\text { So }, \]
\[2563 = \frac{11x}{10}\]
\[11x = 25630\]
\[x = \frac{25630}{11}\]
\[ = \text { Rs } . 2330\]
\[\text { Hence, discount allowed in the price of the cooler = Rs } . \left( 2563 - 2330 \right) = Rs . 233 .\]
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