Sure! Let's solve this step-by-step:
1. Identify the initial cost of the watch:
The initial cost of the watch is Rs. 4,000.
2. Calculate the profit amount:
The profit percentage is 8%.
To find the profit amount, we use the formula:
[tex]\[
\text{Profit Amount} = \text{Initial Cost} \times \frac{\text{Profit Percentage}}{100}
\][/tex]
Plugging in the values:
[tex]\[
\text{Profit Amount} = 4000 \times \frac{8}{100} = 320
\][/tex]
So, the profit amount is Rs. 320.
3. Calculate the selling price before VAT:
The selling price before VAT is obtained by adding the profit amount to the initial cost:
[tex]\[
\text{Selling Price Before VAT} = \text{Initial Cost} + \text{Profit Amount}
\][/tex]
Substituting the values:
[tex]\[
\text{Selling Price Before VAT} = 4000 + 320 = 4320
\][/tex]
So, the selling price before VAT is Rs. 4,320.
4. Calculate the VAT amount:
The VAT percentage is 13%.
To find the VAT amount, we use the formula:
[tex]\[
\text{VAT Amount} = \text{Selling Price Before VAT} \times \frac{\text{VAT Percentage}}{100}
\][/tex]
Plugging in the values:
[tex]\[
\text{VAT Amount} = 4320 \times \frac{13}{100} = 561.6
\][/tex]
So, the VAT amount is Rs. 561.6.
5. Calculate the final amount paid by the customer:
The final amount paid by the customer is obtained by adding the VAT amount to the selling price before VAT:
[tex]\[
\text{Final Amount Paid} = \text{Selling Price Before VAT} + \text{VAT Amount}
\][/tex]
Substituting the values:
[tex]\[
\text{Final Amount Paid} = 4320 + 561.6 = 4881.6
\][/tex]
So, the final amount paid by the customer is Rs. 4,881.6.
In summary:
- The profit amount is Rs. 320.
- The selling price before VAT is Rs. 4,320.
- The VAT amount is Rs. 561.6.
- The final amount paid by the customer is Rs. 4,881.6.
