Question

the price of a dinner set inclusive of VAT is Rs 16820. if the rate of VAT is 16%,find its basic price.

Answer 1

Sp = cp + vat

Let cp be x
Vat = 16% * x = 0.16*x

Therefore,
Sp = x + 0.16*x
Sp = 1.16*x

Now the sp is given as 16820

=> 16820 = 1.16*x
Hence x = 16820/1.16 = 14500

Hence the basic price of the set is 14500.