Question

In January 2011 the rate of VAT increased from 17.5% to 20%, work out the difference in price of a car worth £15000 + VAT due to the increase in VAT.

Answer 1

Step-by-step explanation:

The difference in price of car worth RS 15000+VAT due to the increase in VAT=Rs 375.

Answer 2

Answer:

The difference in price of car worth RS 15000+VAT due to the increase in VAT=Rs 375

Step-by-step explanation:

Let initial VAT= and

Final VAT=

%

20%

Price of Car=RS 15000

17.5 % of 15000=

Total price of Car including VAT=15000+2625=RS 17625

20% of 15000=

Price of car including VAT=15000+3000=RS 18000

The difference in price of car=Rs1 8000-Rs 17625=Rs 375

Hence, the difference in price of car worth RS 15000+VAT due to the increase in VAT=Rs 375