Question

the price of an item inclusive of VAT is rs 9720.if vat is 8% then cost price of the item is

Answer 1

Let the price without tax be Rs x
Rate of sales tax = 8%
So, x+8% of x=9720
⇒(108/100)x=9720
⇒108x= 9720*100
=>x=9720*100/108
⇒x =9000
Thus the price without sales tax is Rs.9000

Answer 2

Answer:

The cost price is Rs.$9000$.

Step-by-step explanation:

If is given that the price of an article is Rs.$9720$.

It is inclusive of VAT of $8%$.

We need to determine the Cost Price excluding VAT.

VAT is Value Added Tax.

Cost price is the price at which the article is bought.

As per the given information.

$(100+8)$%CP$=9720$

$1.08$CP$=9720$

CP$=9720/1.08$

$=9000$

So, the Cost price of the item is Rs.$9000$.

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