Question

Tanvy bought a watch for Rs 1980 including VAT at 10%. Find the original price of the watch.

Answer 1

Let the original price of the watch be Rs x.
VAT = 10% of Rs x
$$\begin{gathered} =\mathrm{Rs}\left(x\times \frac{10}{100}\right) \\ =\mathrm{Rs}\frac{10x}{100} \end{gathered}$$
∴ Price including VAT = $\mathrm{Rs}\left(x+\frac{x}{10}\right)$
$=\mathrm{Rs}\frac{11x}{10}$
Now, $\frac{11x}{10}=1980$
$$\begin{gathered} \Rightarrow x=\left(1980\times \frac{10}{11}\right) \\ =1800 \end{gathered}$$

Hence, the original price of the watch is Rs 1,800.