Question

If 8% VAT is included in the prices, find the original price of
a) A TV bought for Rs 13,500
b) A shampoo bottle bought for Rs 180

Answer 1

VAT added = 8%

(a) price including VAT = Rs.13,500
     Let the cost price of TV = Rs.100
     cost included VAT = 100+8 = Rs.108
When C.P including VAT is Rs.108, C.P = 100
When C.P including VAT is Rs.13500, C.P = 100/108*13500= Rs.12500

(b)price including VAT = Rs.180
     Let the cost price of TV = Rs.100
     cost included VAT = 100+8 = Rs.108
When C.P including VAT is Rs.108, C.P = 100
When C.P including VAT is Rs.180, C.P = 100/108*180= Rs.166.66

Answer 2

X +8% of x = 13500

X + 8/100*x=13500

100x+8x/100=13500

108x/100=13500

108x=13500*100

X=1350000/108

X=12500