Question

Suppose a racing bicycle costs R1525 excluding VAT and R1753.75 including VAT. What is the percentage of VAT charged

Answer 1

The percentage of VAT charged is 15%.

Step-by-step explanation:

We are given that a racing bicycle costs Rs 1525 excluding VAT and Rs 1753.75 including VAT.

And we have to calculate the percentage of VAT charged.

AS, Cost of bicycle excluding VAT = Rs 1525

      Cost of bicycle including VAT = Rs 1753.75

So, % of VAT charged =  $\frac{\text{Cost including VAT}-\text{Cost excluding VAT}}{\text{Cost excluding VAT}} \times 100$

                                     =   $\frac{1753.75 -1525}{1525}\times 100$

                                     =  15%

Hence, the percentage of VAT charged is 15%.