Question

A radio is bought at rs8000.If it is sold at 60%loss and then 40%vat is added.Find the selling price of radio.​

Answer 1

Question:-

A radio is bought at Rs.8000.If it is sold at 60% loss and then 40% VAT is added. Find the selling price of radio.

Required Answer:-

Given:-

• The radio was bought at Rs. 8000
• Sold at 60% loss
• VAT added 40%

To Find:-

• Selling price of the radio

Solution:-

First, let's know about VAT.

To meet the article expenditures, the government imposes different types of taxes. Value Added Tax (VAT) is one of these. We calculate the amount of VAT by multiplying the net value with VAT percentage.

Now, let's solve it!

As we were given,

• The radio was bought at Rs. 8000 and sold at 60% loss

So, we can say:-

In Rs. 100 the loss was Rs. 60

∴ In Rs. 1 the loss was Rs. (60/100)

∴ In Rs. 8000 the loss was Rs. {(60×8000) /100} = Rs. 4800

Therefore, the sell price becomes Rs.4800

Now, let's calculate VAT.

We were given,

• The radio was sold at 60% loss and 40% VAT was added.

Which means, the VAT was added after the 60% loss.

Hence,

The amount of VAT = 40% of 4800

∴The amount of VAT = Rs. (40/100 × 4800)

∴The amount of VAT = Rs.1920

Therefore, the amount of VAT is Rs.1920

Now,

Now, the selling price of the radio including VAT = Rs. (4800 + 1920) = Rs.6720

Hence, the selling price of the radio is Rs. 6720 (Answer)