ishan purchased medicine for rs 5400 including 12.5% tax . find the price before tax was added
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Answer:
Given:
Price of medicine .= ₹ 54000
Let the original price = ₹ 100
12.5% VAT means that if the price without VAT is ₹ 100, then price including VAT will be ₹ 112.5.
When price including VAT is ₹ 112.5, original price = ₹ 100
When price including VAT is ₹ 1, original price = ₹ 100/112.5
When price including VAT is ₹ 5400, original price = ₹ (100/112.5) x 54000
=100 x 480= ₹48000
The price before VAT was added = ₹48000
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