A product is originally priced at ₹2,000. A 15% discount is applied to the original price. After the discount, a 10% Value Added Tax (VAT) is charged on the discounted price. What is the net amount paid for the product?
Show answer & explanation
Correct answer: A
Explanation
The correct answer is option 1 i.e. ₹1870.
Given original Price = ₹2000
Discount (15%)
15% of 2000 = 2000 × 15/100 = ₹300
Discounted Price = 2000 − 300 = ₹1700
VAT (10%) on the discounted price
10% of 1700 = 1700 × 10/100 = ₹170
Thus, final Amount = 1700 + 170 = ₹1870