Question

A TV set was bought for $Rs.26,250$ including $5\%$ VAT. The original price of the TV set is

• A. $Rs.27,562.50$
• B. $Rs.25,000$
• C. $Rs.24,937.50$
• D. $Rs.26,245$

Answer 1

The correct option is B $Rs.25,000$

Let the cost of TV be $x$.

VAT $=5\%$ of $x$

So,

$x+\frac{5x}{100}=26250$

$\frac{21x}{20}=26250$

$x=26250\times \frac{20}{21}$

$x=Rs.25,000$

Hence, this is the answer.