Question

The cost price of a washing machine is Rs.12500. If 12% VAT is added then its selling price will be
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Answer 1

Answer:

14000 is the correct answer

Answer 2

Given :-

Cost Price of the article = ₹12,500

VAT percentage = 12%

To Find :-

The selling price

Solution :-

Total VAT (in ₹) = 12% of CP

= 12% of ₹12,500

${\sf{=\: {\dfrac{12}{100}}\: \times\: 12500}}$

${\sf{=\: 125\: \times\: 12}}$

${\sf{=\: 1500}}$

Selling price = CP + VAT

= ₹( 12500 + 1500)

= ₹ 14,000

Therefore, selling price is ₹14,000

Short-hands Used :-

CP : Cost Price

SP : Selling price

VAT : Value added Tax