Question

Priya bought a suitcase for Rs. 2,730 . The VAT for this item is 5 %. What was the price of the suitcase before VAT was added? Also state how much is the VAT.

Answer 1

Given : VAT is $5$%
If the price without VAT is $100$, then the price including VAT is $105$.
Now, when price including VAT is $105$, original price is $100$.
When price including VAT is $2,730$, the original price of the suitcase $=\frac{100}{105}\times 2730=$ $2,600$
The original price of the suitcase $=$ $2,600$
$\therefore$ VAT $=2,730-2,600=$ $130$