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%
VAT at the rate 7% of 175 = 7/100 × 175 = Rs 12.25
∴ Net value of pair of shoes = sale price +VAT
= 175 + 12.25 = Rs 187.25
