Question

Anjana buys a purse for Rs 523.80 including 8% VAT. Find the new selling price of the purse if VAT increases to 10%.

Answer 1

It is given that

Total C.P. of purse including $VAT=Rs.523.80$

Rate of $VAT=8$%

We know that

Actual cost of the purse $=(523.80\times 100)/(100+8)$

By further calculation

$=(523.80\times 100)/108$

$=Rs485$

Here

New rate of $VAT=10$%

Amount of $VAT=485\times 10/100$

So we get

$=4850/100$

$=Rs.48.50$

So the total cost of the purse $=485+48.50=Rs.533.50$