A watch was bought for ₹ 2,700 including 8% VAT. Find its price
before the VAT was added. *
Answers
Answer:
₹2500
Step-by-step explanation:
Final price = ₹2700
Rate of VAT = 8%
Let the original price be x.
According to Question,
(100+8)% of x = 2700
=> 108% of x = 2700
=> 108/100 x = 2700
=> x = 2700 × 25/27
=> x = 2500
Hence, the price before VAT was added was ₹2500.
SOLUTION
GIVEN
A watch was bought for ₹ 2,700 including 8% VAT.
TO DETERMINE
The price before the VAT was added.
EVALUATION
Let us assume that the price before the VAT was added = ₹ 100C
Since the VAT is 8%
So VAT amount = ₹ 8C
Thus price after the VAT was added
= ₹ 100C + ₹ 8C
= ₹ 108C
So by the given condition
108C = 2700
Hence the required price before the VAT was added
= ₹ 100C
= ₹ ( 100 × 25 )
= ₹ 2500
FINAL ANSWER
The price before the VAT was added
= ₹ 2500
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