Question

Shruti bought a set of cosmetic items for Rs $345$ including $15\%$ value added tax and purse for Rs $110$ including $10\%$ VAT. What percent is the VAT charged on the whole transaction?

Answer 1

Let price of cosmetics be $"x"$ and price of purse be $"y"$.

VAT$=15\%$ of $x$ VAT$=10\%$ of $y$

$=\frac{15}{100}\times x$ $=\frac{10}{100}\times y$

$=\frac{3x}{20}$ $=\frac{y}{10}$

S.P of cosmetic items S.P of purse

$x+\frac{3x}{20}=\frac{23x}{20}$ $y+\frac{y}{10}=\frac{11y}{10}$

$\frac{23x}{20}=345$ $\frac{11y}{10}=110$

$x=300$ $y=100$

Total selling price $=345+110$

Let $r\%$ be VAT on $400$

$\frac{r}{100}\times 400=(455-400)=55$

$r=\frac{55}{4}=13.75\%$

VAT on whole transaction is $13.75\%$.