Question

A refrigerator is available for Rs 13750 including VAT. If the rate of VAT is 10%, find the original cost of the furniture.

Answer 1

$$\begin{gathered} \mathrm{Cost}\mathrm{of}\mathrm{the}\mathrm{refrigerator}\mathrm{inclusive}\mathrm{VAT}=\mathrm{Rs}.13,750 \\ \mathrm{Let}\mathrm{the}\mathrm{original}\mathrm{cost}\mathrm{of}\mathrm{the}\mathrm{furniture}\mathrm{be}\mathrm{Rs}.x. \\ \mathrm{Cost}\mathrm{of}\mathrm{the}\mathrm{furniture}=10\%\mathrm{of}x+x \\ 13,750=1.10x \\ x=\frac{13,750}{1.10} \\ =\mathrm{Rs}.12,500 \\ \mathrm{Thus},\mathrm{the}\mathrm{original}\mathrm{cost}\mathrm{of}\mathrm{the}\mathrm{furniture}\mathrm{is}\mathrm{Rs}.12,500. \end{gathered}$$