A laptop is advertised at KSh 12,000 with a discount of 25%. VAT at 16% is added to the discounted price. What is the final price?
Answer and explanation
Correct answer: A. KSh 10,440
- Step 1: Discounted price = 75% of 12,000 = 9,000. Step 2. Add VAT: 9,000 x 1.16 = KSh 10,440. Answer: KSh 10,440. Why not the others: KSh 10,920: That adds and subtracts the percentages together instead of applying them one after the other. KSh 9,000: That is the price after discount but before VAT. KSh 13,920: That adds VAT but leaves out the discount.
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