Mathematics
Percentage: discount and VAT
Class 8
Intermediate
About 15 min
Premium
Discount and VAT: shopping at the Dashain sale
Take a discount off a marked price, add 13% VAT to the selling price, and see when the bill ends up below the price on the tag.
Core concept
Discount is a percentage of the marked price; VAT is a percentage of the selling price after the discount
Topic: Percentage: discount and VAT
At the Dashain sale a jacket has a marked price of Rs 4000 and a sticker saying 25% off. The discount is 25% of the marked price: 25/100 × 4000 = Rs 1000, so the selling price is Rs 3000. In Nepal, VAT of 13% is then added to the selling price, not to the marked price: 13/100 × 3000 = Rs 390, and the bill is Rs 3390. Because the discount and the VAT are percentages of different amounts, they do not simply cancel out.
What you will learn
- Calculate a discount and the selling price from a marked price.
- Add VAT to a selling price to find the amount to pay.
- Explain why a discount and VAT do not simply cancel out.
Before you start
- Find a percentage of an amount.
Materials
- A shop bill with VAT
Equipment
- A calculator
Procedure
- Tap − or + on the price tag to change the marked price, and − or + under the sticker to change the discount.
- Tap the VAT switch to add or remove 13% VAT.
- Record the bill for a Rs 4000 jacket at 25% off with VAT.
- Record a sale where the bill is still more than the marked price, one where it is less, and a half-price sale.
How this simulation is simplified
- VAT is 13% of the selling price, as in Nepal.