Reena goes to ashop to buy a radio, costing Rs. 2568. The rate of VAT is 7%. She tells the shopkeeper to reduce the price of the radio such that she has to pay Rs. 2568, inclusive of VAT. Find the reduction needed in the price of radio.

Given,


Cost of radio = Rs.2568


Rate of VAT = 7%


Let the reduced price, excluding VAT of the radio = Rs.X


= VAT = 7 % of Rs. X = Rs.


Hence,


Selling price of radio = Rs.


Selling price = Rs.2568……………………………..Given


So,


=


=


Reduction needed in price of radio = Rs.( 2568 – 2400) = Rs.168


10