Question

Anjali buys a purse for ₹523.80 invluding 8% VAT. Find the new selling price of the purse if VAT increases to 10%

Answer 1

Let the original price of the purse be Rs. x .
Then , price including VAT = Rs. x + 8% of x
= Rs. 108x/100
But , price including VAT = Rs. 523.80
Then ,
108x/100 = 523.80
=> x = 523.80×100/108
.: x = 485

Now , original price of the purse = Rs. 485
Rate of VAT = 10%
.: price including VAT = Rs. 485 + 10% of 485
= Rs. 485 + 48.5
= Rs. 533.5
Hence price including VAT of 10% is Rs. 533.5