Question

Prachi bought medicines from a medical store as prescribed by her doctor for $Rs36.40$ including $4\%$ VAT. Find the price before VAT was added.

Answer 1

Given:

Selling price $=$ Cost price $+$ VAT

VAT paid is $4\%$ of $Rs.36.4$ $=\frac{4}{100}\times 36.40$

$=4\times 0.364$

$=Rs.1.456$

Price before VAT is added $=36.40-1.456=Rs.34.944$