Question

dikbagh singh purched a biccycle for 1890 including VAT.the list prize of bicycle is 1800 the rate of VAT.

Answer 1

Let vat = x

LP = 1800

Purchased at 1890

LP + x% of LP = 1890

1800 + x/100 * 1800 = 1890

18x = 1890 - 1800

x = 90/18

x=5%

Answer 2

Price including VAT = Rs 1890

Price without VAT = Rs 1800

Find VAT:

VAT = 1890 - 1800 = Rs 90

Find VAT Rate:

VAT Rate = 90/1800 x 100 = 5%

Answer: The VAT is 5%