Question

The original price of a washing machine which was bought for $₹13,500$ inclusive of $8\%$ VAT is:

• A. $₹12,420$
• B. $₹14,580$
• C. $₹12,500$
• D. $₹13,492$

Answer 1

The correct option is C

$₹12,500$

Cost price(C.P.): The original price of the product.

Selling Price(S.P.): The amount at which the product is sold

Marked Price: The price mentioned by the shopkeeper is more than the selling price, to give a discount to the buyer.

Given:

• The selling price of the washing machine$=₹13500$
• Value-added tax (VAT)$=8\%$

VAT is a form of tax that is assessed incrementally. It is levied on the actual transaction value of a product or service at each stage of production, distribution, or sale to the end consumer.

Finding the original price(C.P.):

$\therefore \mathrm{C}.\mathrm{P}.+\mathrm{VAT}=\mathrm{Selling}\mathrm{Price}$

$\begin{array}{rcl}\therefore \mathrm{C}.\mathrm{P}.+8\%\mathrm{of}\mathrm{C}.\mathrm{P}.& =& 13500\\ 108\%\mathrm{of}\mathrm{C}.\mathrm{P}.& =& 13500\\ \frac{108}{100}\times \mathrm{C}.\mathrm{P}.& =& 13500\\ \mathrm{C}.\mathrm{P}.& =& \frac{13500\times 100}{108}\\ \mathrm{C}.\mathrm{P}.& =& ₹12500\end{array}$

Therefore, the original price of the washing machine is $₹12,500$.