Rani purchases a pair of shoes whose sale price is Rs. 175. If she pays VAT at the rate of 7%, how much amount does she pay as VAT? Also, find the net value of the pair of shoes.
Given,
Sale price of shoes = Rs.175
VAT = 7%
= 7% of 175 = 
∴ Net value of pair of shoes = sale price +VAT
= 175 + 12.25 = Rs.187.25
4