Question

A gold ring is purchased for Rs. 18,700 including VAT. Find the selling price of the ring.

KINDLY GIVE THE ANSWER WITH DETAILED EXPLANATION

Answer 1

VAT is the Value Added Tax

Actually,
VAT is 10%. But not given in question. (Question mistake.)

=> Purchase price is 18700 (including VAT)

VAT is 10% of the price.
( Since VAT is included in price... )

18700 × 10 / 110 = 1700

( Here I take 10/110 because , including VAT , denominator become sum of 100 +10 = 110,
Then % become 10/110 )

Hence,
VAT = 1700

Selling Price = 18700 - 1700
=17000