Question

Mark (✓) against the correct answer:
The price of a watch including 8% VAT is Rs 810. What is its basic price?
(a) Rs 675
(b) Rs 729
(c) Rs 750
(d) Rs 745

Answer 1

​(c) Rs.750

$$\begin{gathered} \mathrm{Let}\mathrm{the}\mathrm{original}\mathrm{price}\mathrm{be}\mathrm{Rs}x. \\ \mathrm{VAT}=8\%\mathrm{of}\mathrm{Rs}x \\ =\mathrm{Rs}\left(x\times \frac{8}{100}\right) \\ =\mathrm{Rs}\frac{8x}{100} \\ \therefore \mathrm{Price}\mathrm{including}\mathrm{VAT}=\mathrm{Rs}\left(x+\frac{8x}{100}\right) \end{gathered}$$
$=Rs.\frac{108x}{100}$
$\mathrm{Now},\frac{108x}{10}=810$
$$\begin{gathered} \Rightarrow x=\left(810\times \frac{100}{108}\right) \\ \Rightarrow x=750 \end{gathered}$$