Subjects commerce

Price Calculations

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Price Calculations


1. Problem b) A shopkeeper bought an electric fan for 2000 and fixed its price 20% above cost price. Then he gives 15% discount and adds 15% VAT. Find the final price a customer pays. 2. Problem c) A dealer marks mobiles 40% above cost price and allows 20% discount. Cost price is 7500. Find final price with 13% VAT. 3. Problem 10a(i) A doll sold at 1808 after 20% discount and 13% VAT. Find selling price without VAT. 4. Problem 10a(ii) Find marked price of the doll. 5. Problem 10b A watch sold for 4746 after 16% discount and 13% VAT. Find marked price. --- **Step 1: Understand formulas and rules** - Marked Price (MP) = Cost Price (CP) + % increase on CP - Selling Price before discount = MP - Selling Price after discount = MP \times (1 - discount%) - Price after VAT = Selling Price after discount \times (1 + VAT%) --- **Step 2: Solve problem b** - CP = 2000 - MP = 2000 \times (1 + 0.20) = 2000 \times 1.20 = 2400 - Price after 15% discount = 2400 \times (1 - 0.15) = 2400 \times 0.85 = 2040 - Price after 15% VAT = 2040 \times (1 + 0.15) = 2040 \times 1.15 = 2346 **Answer b:** Customer pays 2346 --- **Step 3: Solve problem c** - CP = 7500 - MP = 7500 \times (1 + 0.40) = 7500 \times 1.40 = 10500 - Price after 20% discount = 10500 \times (1 - 0.20) = 10500 \times 0.80 = 8400 - Price after 13% VAT = 8400 \times (1 + 0.13) = 8400 \times 1.13 = 9492 **Answer c:** Customer pays 9492 --- **Step 4: Solve problem 10a(i)** - Let MP = marked price - Selling price after discount = MP \times (1 - 0.20) = 0.80 MP - Price after VAT = 0.80 MP \times (1 + 0.13) = 0.80 MP \times 1.13 = 0.904 MP - Given price after VAT = 1808 - So, 0.904 MP = 1808 - MP = 1808 / 0.904 = 2000 - Selling price without VAT = 0.80 MP = 0.80 \times 2000 = 1600 **Answer 10a(i):** Selling price without VAT is 1600 --- **Step 5: Solve problem 10a(ii)** - From above, MP = 2000 **Answer 10a(ii):** Marked price is 2000 --- **Step 6: Solve problem 10b** - Let MP = marked price - Selling price after discount = MP \times (1 - 0.16) = 0.84 MP - Price after VAT = 0.84 MP \times (1 + 0.13) = 0.84 MP \times 1.13 = 0.9492 MP - Given price after VAT = 4746 - So, 0.9492 MP = 4746 - MP = 4746 / 0.9492 \approx 5000 **Answer 10b:** Marked price is approximately 5000