A store offers a "25% off" discount but charges 5% VAT on the discounted price. If the marked price is Rs. 1600, what is the final amount paid?
Show answer & explanation
Correct answer: B
Explanation
Given:
Marked Price (MP) = ₹1600
Discount = 25%
VAT = 5%
Discount = (1600 × 25) / 100 = ₹400
Price after discount = 1600 − 400 = ₹1200
VAT = (1200 × 5) / 100 = ₹60
Total amount = 1200 + 60 = ₹1260