RITU BOUGHT A SHIRT OF 4536 RUPEES (INCLUDING VAT). ORIGINAL PRICE OF THE SHIRT IS 4200 RUPEES. WHAT IS THE PERCENTAGE OF VAT?

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Solution

Buying price of the shirt = Rs. 4536
Original price of the shirt = Rs. 4200
VAT(in terms of money) on shirt = Buying Price - Original price
= 4536 - 4200
= Rs. 336
The VAT(in percentage) on shirt = [VAT(in terms of money) / Original Price] * 100
= [336 / 4200] * 100
= 8 %

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