Solution:
Given:
Rate of discount = 20%
Rate of VAT ( value added tax ) = 13%
Amount of VAT = Rs. 83.20
To find: Marked price (M.P)
Let, marked price of cap be Rs. x
By formula,
Selling price (SP) = MP - Discount % of MP
= x - 20% of x
= \(x-\frac{20}{100}\times x\)
= \(x-\frac x5\)
= \(\frac{5x-x}5\)
= \(\frac{4x}5\)
Again, by formula
Amount of VAT = VAT % of SP
Or, \(83.20=13\%\times\frac{4x}5\)
Or, \(83.20=\frac{\displaystyle13}{100}\times\frac{4x}5\)
Or, \(83.20=\frac{13x}{125}\)
Or, \(x=\frac{83.20\times125}{13}\)
Or, x = Rs. 800
Hence the marked price of the cap is Rs. 800 is the required answer