Question

A refrigerator is available for Rs. 13,750 including VAT. If the rate of VAT is $10\%$, find the original cost of refrigerator.

Answer 1

Cost of refrigerator including VAT = Rs. 13,750
Rate of VAT $=10\%$
$\therefore$ Actual price of refrigerator
$=Rs.\frac{13,750\times 100}{100+10}=Rs.\frac{13,750\times 100}{110}$
$=Rs.12,500$