Let's solve the problem step by step to find the required values.
### (i) Calculate the selling price excluding VAT
Given:
- Selling price including VAT = Rs 4,400
- VAT rate = 10%
To find the selling price excluding VAT, we use the formula:
[tex]\[ \text{Selling Price (excl. VAT)} = \frac{\text{Selling Price (incl. VAT)}}{1 + \text{VAT rate}} \][/tex]
Substituting the given values:
[tex]\[ \text{Selling Price (excl. VAT)} = \frac{4400}{1 + 0.10} = \frac{4400}{1.10} \approx 4000 \][/tex]
So, the selling price excluding VAT is approximately Rs 4000.
### (ii) Find the discount amount
Given:
- Marked price = Rs 4500
- Selling price excluding VAT = Rs 4000
The discount amount can be found by subtracting the selling price (excluding VAT) from the marked price:
[tex]\[ \text{Discount Amount} = \text{Marked Price} - \text{Selling Price (excl. VAT)} \][/tex]
Substituting the values:
[tex]\[ \text{Discount Amount} = 4500 - 4000 = 500 \][/tex]
So, the discount amount is Rs 500.
### (iii) What is the discount rate?
The discount rate is calculated as the discount amount divided by the marked price, and then multiplied by 100 to convert it into a percentage:
[tex]\[ \text{Discount Rate} = \left( \frac{\text{Discount Amount}}{\text{Marked Price}} \right) \times 100 \][/tex]
Substituting the values:
[tex]\[ \text{Discount Rate} = \left( \frac{500}{4500} \right) \times 100 \approx 11.11\% \][/tex]
So, the discount rate is approximately 11.11%.
### Summary of Results
1. Selling Price excluding VAT: Rs 4000
2. Discount Amount: Rs 500
3. Discount Rate: 11.11%
