Question

. Consumer price of an article is $1000 inclusive of value-added tax of 4%. Find the list price of the article.

Answer 1

Given,

Tax added price of the article is $1000

Tax percentage is 4%

Solution,

For calculating the list price of the article we have to first calculate the 4% added tax and then we just need to deduct the tax from the final price.

Let,the list price = $x

So, tax = x × 4/100 = $ x/25

So, final price = (x+x/25) = $ 26x/25

Now,comparing the final price that we calculated and the final price mention in the question, we get the following equation :

26x/25 = 1000

x = 25000/26

x = 961.53

Hence,the list price of the article is approximately $961.53