Question

The cost of furniture inclusive of VAT is $Rs.7150$. If the rate of VAT is $10\%$, find the original cost of the furniture.

• A. $Rs.5000$
• B. $Rs.3000$
• C. $Rs.6500$
• D. $Rs.2000$

Answer 1

The correct option is A $Rs.5000$

Let the cost be Rs $x$
VAT $=10\%$
Cost including VAT $=Rs.7150=x+10\%$ of $x$
$7150=x+\frac{10}{100}\times x$
$7150=\frac{110}{100}x$
$x=Rs.6500$
Thus, original cost of the furniture is $Rs.6500$