A manufacture of furniture sells a sofa set to a retailer for Rs 23000.the retailer, inturn, sells the sofa set to a customer for Rs 29000.find the VAT rate as percent,if the retailer pays Rs520 as VAT.
To find the VAT rate as a percentage, we need to calculate the VAT amount first. We know that the retailer paid Rs 520 as VAT.
Let's denote the VAT rate as 'x'.
VAT amount = (Amount paid by the retailer - Amount paid to the manufacturer)
Therefore, Rs 520 = (Rs 29000 - Rs 23000) * x / 100
Now, let's solve this equation to find the value of 'x'.
Rs 520 = Rs 6000 * x / 100
Multiplying both sides by 100 to eliminate the denominator:
Rs 520 * 100 = Rs 6000 * x
Rs 52000 = Rs 6000x
Dividing both sides by 6000:
x = Rs 52000 / 6000
x = 8.67
Therefore, the VAT rate is 8.67%.
Please note that it is always a good idea to double-check the calculation to avoid any errors.