The Shopkeeper sold her goods for Rs. 16,950 allowing 25%discount and then levied on 13% VAT. What was the amount of discount?

The amount of discount is Rs.5,000

Step-by-step explanation:

The given parameters are;

The amount the shopkeeper sold her goods = Rs. 16,950

The percentage discount allowed = 25%

The VAT included in the sale = 13%

Therefore, we have;

Sale amount = Discounted price + VAT percentage × Discounted price

Discounted price = (100 - Percentage discount)/100×Display price

Sale amount = The amount the shopkeeper sold her goods = Rs. 16,950

Let the display price = X;

We have;

Discounted price = (100 - 25)/100×X = 0.75·X

Therefore;

Sale amount = 0.75·X+ 13/100 × 0.75·X

Rs. 16,9504 = 0.8475·X

X = Rs. 16,950/0.8475 = Rs.20,000

Therefore, the display price = Rs.20,000

The amount of discount = Percentage discount × Display price

The amount of discount = 25/100 × Rs.20,000 = Rs.5,000

The amount of discount = Rs.5,000.

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