Question

Malti bought a VCR for Rs 19980 including VAT. If the original price of VCR be Rs 18500, find the rate of VAT.

Answer 1

Let the rate of VAT be x%. Then, we have:

$$\begin{gathered} 18500+x\%of18500=19980 \\ \Rightarrow \left(\frac{x}{100}\times 18500\right)=19980-18500 \\ \Rightarrow 185x=1480 \\ \Rightarrow x=\frac{1480}{185} \\ =8 \end{gathered}$$

∴ The rate of VAT is 8%.