Question

Amit purchased a toy car for Rs 860 including a tax of 10%. Find the price of a car before VAT was added​

Answer 1

The price of a car before VAT was added​ is about Rs 781.82

Given:

• A toy car purchased for Rs 860 including a tax of 10 %

To Find:

• The price of a car before VAT was added​

Solution:

Step 1:

Assume Price of toy car before VAT = Rs x

Step 2:

Calculate VAT as 10 % of Rs x

VAT = (10/100)x = 0.1x

Step 3:

Add  Price before VAT and VAT to find total price paid

Total Price Paid = x+ 0.1x  = 1.1x

Step 4:

Equate total price 1.1x  with Rs 860 and solve for x

1.1x = 860

=> x ≈ 781.82

The price of a car before VAT was added​ is about Rs 781.82