Question

A phone has a cost of $Rs.1200$ excluding VAT at $10\%$. After VAT is included, what is the total cost?

• A. $Rs.1200$
• B. $Rs.1230$
• C. $Rs.1320$
• D. $Rs.2301$

Answer 1

The correct option is C $Rs.1320$

VAT $=10\%$ of the cost $=\frac{10}{100}\times 1200=120$

So the total cost including VAT $=1200+120=1320$