Question

Ram bought a painting for 3762.50 including a tax of
7.5%. Find the price of painting before VAT was added.
(A) 3500
(B) 4000
(C) 4500
(D) 5000
​

Answer 1

Let the price before tax be X₹

X+7.5% of X = 3762.50

X+ 7.5/100 x X = 3762.50

X + 3X/40 = 3762.50

(40X+3X)/40 = 3762.50

43X/40 = 3762.50

X = 3762.50 x 40/43

X= 3500

Cost before adding tax was ₹3,500.

Option A.