Question

A colour TV is available for Rs 13440 inclusive of VAT. If the original cost of TV is Rs 12000, find the rate of VAT.

Answer 1

$$\begin{gathered} \mathrm{Cost}price\mathrm{of}\mathrm{the}\mathrm{TV}\mathrm{inclu}ding\mathrm{VAT}=\mathrm{Rs}.13440 \\ \mathrm{Let}\mathrm{the}\mathrm{rate}\mathrm{of}\mathrm{VAT}\mathrm{be}x\%. \\ \mathrm{Cost}\mathrm{of}\mathrm{the}\mathrm{TV}=x\%\mathrm{of}12000+12000 \\ 13440-12000=120x \\ 120x=1440 \\ x=\frac{1440}{120} \\ =12 \\ \mathrm{Thus},\mathrm{the}\mathrm{rate}\mathrm{of}\mathrm{VAT}onthecolourTV\mathrm{is}12\%. \end{gathered}$$