Shivika goes to a shop to buy an item quoted at Rs. 2000. The rate of GST is
12% on it. She asks the shopkeeper for a rebate on the price of that item to such
an extent that she has to pay Rs. 2016 inclusive of GST. Find the rebate % on the
price of that item?
Answers
Shivika wants a 10% rebate on the price of the item
Step-by-step explanation:
Price of item = Rs. 2000
GST = 12%
GST value = 240
So the item will cost 240
But Shivika wants to pay Rs. 2016 including GST.
So Price + 12% of price = 2016
Therefore Price (1 + 12/100) = 2016
Price (100 + 12) = 2016 * 100
Price (112) = 201600
Therefore price = 201600/112 = 1800
Price will be Rs. 1800
GST value will be Rs. 216
Total price will be Rs. 2016 as desired by Shivika.
So rebate = 2000 - 1800 = 200
Rebate percentage = 200/2000 * 100 = 10%
Shivika wants a 10% discount on the price of that item.
The correct answer is Shivika wants a 10% rebate on the price of the item
Step-by-step explanation:
Given, Item cost = Rs. 2000
Given, GST = 12%
Hence, GST value on the item = 240
But Shivika intends to pay Rs. 2016 including GST.
So, Actual Price + 12% of price should be Rs. 2016
Hence, Actual Price (1 + 12/100) = 2016
Actual Price (100 + 12) = 2016 * 100
Actual Price (112) = 201600
Actual price = 201600/112 = 1800
Hence, Price finally paid by Shivika will be Rs. 1800
GST value on the item will finally be Rs. 216
Rebate as desired by Shivika = 2000 - 1800 = 200
Hence, Percentage on Rebate = 200/2000 * 100 = 10%
Therefore, Shivika wants a 10% discount on the price of that item.
Hope it helps!
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