Math 2017 Question 43
Question 43
Mrs Brown bought the stove shown below at a discount of 20%
(a) Calculate the discount in dollars. (1 mark)
(b) What was the cost of the stove after the discount? (1 mark)
(c) Mrs Brown paid VAT at 12 1/2% on the discounted price.
How much VAT did she pay?
(d) Calculate the final price that Mrs Brown paid for the stove.
Answer
(a) $800
(b) 3200
(c) $400
(d) $3600
Explanation
(a) Discount = Base price × percentage discount
Discount = 4000 × 20 ÷100 = $800
(b) Cost of Stove after Discount = Base Price – Discount = 4000-800 = $3200
(c) VAT = Cost of Stove after Discount × VAT Rate = 3200 × 12 ½ ÷100 = $400
(d) Total Cost of Stove = Cost of Stove after Discount + VAT = 3200+400 = $3600
