Question

Meena bought an A.C. for Rs. 22,000 including a tax of 10%. Find the price of the A.C. before VAT was added

Answer 1

C.p = 22000

Rate of VAT = 8%

Let the c.p. of A.C. without VAT be rupees 100, then, price including VAT = 100+10 = 110 rupees.

since, price including VAT is rupees 110 , then original price = rupees 100

Therefore, when when price including VAT is rupees 1 , then original price = 100/110

when price including VAT is rupees 22000,then

original price = 100/110×22000

=2000