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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.

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Sale price of a pair of shoes `=` Rs.`175`
Rate of VAT `=7%`
∴Total VAT paid `=`Rs.`(175×7)/100 =`Rs`12.25`
Total amount paid `=` Rs. `175` `+` Rs. `12.25 =`Rs.`187.25`
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