A laptop is advertised at KSh 5,000 with a discount of 20%. VAT at 16% is added to the discounted price. What is the final price?
Answer and explanation
Correct answer: A. KSh 4,640
- Step 1: Discounted price = 80% of 5,000 = 4,000. Step 2. Add VAT: 4,000 x 1.16 = KSh 4,640. Answer: KSh 4,640. Why not the others: KSh 4,800: That adds and subtracts the percentages together instead of applying them one after the other. KSh 4,000: That is the price after discount but before VAT. KSh 5,800: That adds VAT but leaves out the discount.
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