Question

Rohit purchased a pair of shoes for $Rs.882$ inclusive of VAT. If the original cost be $Rs.840$, find the rate of VAT.

Answer 1

Price including VAT $=Rs.882$

Original price (without VAT) $=Rs.840$

Let the rate of VAT be $x\%$.

Then, we have:

Original price (without VAT) $+$ VAT $=$ Price including VAT

$\Rightarrow 840+x\%of840=882$

$\Rightarrow \frac{x}{100}\times 840=882-840$

$\Rightarrow \frac{84x}{10}=42$

$\Rightarrow x=\frac{42\times 10}{84}=5$
$\therefore$ The rate of VAT is $5\%.$