$Malti bnought a VCR for Rs.19980 including VAT.If the original price of VCR be Rs. 18500,find the rate of VAT.$

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Solution

$Sale Price of VCR including VAT=Rs.19980 Original price=Rs.18500 ∴ Amount of VAT=Rs.19980-Rs.18500=Rs.1480 R a t e o f V A T = \frac{T o t a l V A T \times 100}{O r i g i n a l p r i c e} = R s . \frac{1480 \times 100}{18500} = 8 %$

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