Question

At a resraurant you order a meal that cost rupees 120, excluding the taxes. the total bill including the vat and a tip of rupees 20 is rupees 146. find the vat.

Answer 1

Cost of meal is = Rs. 120
Price including tip and VAT = Rs. 146

So,
Exclude the tip of Rs. 20,
= 146 - 20 = 126
So,
Money including only VAT is Rs. 126
Now let the VAT % be x,

120 + x% of 120 = 126

120 + x/100 × 120 = 126

120 + 6x/5 = 126

6x/5 = 126 - 120

6x/5 = 6

x = (6 × 5)/6

x = 30/6

x = 5%

Hence, VAT % is 5%.

Answer 2

only coast of meal=120
Bill including vat andctip=146
tip=20
vat=?
vat=meal+tip-total coast
vat=120+20-146
vat=6