Question

a shopkeeper buys an article whose list price is Rs.800 at some rate of discount from a wholesaler. He sells the article to a customer at the list price and charges sales tax at the prescribed rate of 7.5%. if the shopkeeper has to pay a VAT of Rs.6,find the rate of discount at which he bought the article from the wholesaler.

Answer 1

MP = 800
let the discount be x
CP = 800-x
Now
SP = 800
profit= 800-(800-x)= x
Now
tax % = 7.5%
ATQ
the VAT paid by the shopkeeper=6
(7.5/100) x = 6
x = 80

the discount = 80

Answer 2

Answer:

The rate of discount at which the shopkeeper bought the article is Rs. 80.

Solution:

Given, the List Price (LP) = Rs. 800

Let the discount be X

Hence, Cost Price (CP) = Rs. (800 - X)

Now, the article was sold at the list price (SP) = Rs. 800

Thus, Profit = SP - CP

= Rs (800 - (800 - X) ) = Rs. X

Given,

Prescribed rate of tax % = 7.5%

According to the Problem,  

the VAT paid by the shopkeeper= Rs 6

If the Profit is equal to the discount he got, the VAT paid by him must be equal to the rate of tax. Then,

$\left( \frac { 7.5 } { 100 } \right) X = 6 \Rightarrow X = \frac { 6000 } { 75 } = 80$

Thus, X = Rs 80  

The rate of discount that the shopkeeper got from the wholesaler is Rs. 80.