1. **State the problem:** Florence bought a golf bag originally costing 125 including VAT at 23%. She received a 15% discount. We need to find how much VAT she paid after the discount, rounded to the nearest cent. 2. **Understand the VAT and discount:** The original price 125 includes VAT at 23%, so the price before VAT is calculated by dividing by 1.23. 3. **Calculate the original price before VAT:** $$\text{Price before VAT} = \frac{125}{1.23} \approx 101.626\,.$$ 4. **Apply the 15% discount:** Discounted price before VAT is: $$101.626 \times (1 - 0.15) = 101.626 \times 0.85 = 86.3821\,.$$ 5. **Calculate VAT on discounted price:** VAT is 23% of the discounted price before VAT: $$\text{VAT} = 86.3821 \times 0.23 = 19.867\,.$$ 6. **Round to nearest cent:** $$\text{VAT} \approx 19.87\,.$$ **Final answer:** Florence paid approximately **19.87** in VAT after the discount.