Question

The sale price of a TV set including VAT is Rs 27000. If the VAT is charged at 8% of the list price, what is the list price of the TV set?

Answer 1

​Let the list price of the TV set be Rs x.
$$\begin{gathered} \mathrm{VAT}=8\%\mathrm{of}\mathrm{Rs}.x \\ =\mathrm{Rs}.\left(x\times \frac{8}{100}\right) \\ =\mathrm{Rs}.\frac{8x}{100} \end{gathered}$$
∴ Price including VAT $=\mathrm{Rs}.\left(x+\frac{8x}{100}\right)$
$=\mathrm{Rs}.\frac{108x}{100}$
$$\begin{gathered} \mathrm{Now},\frac{108x}{100}=27000 \\ \Rightarrow x=\left(27000\times \frac{100}{108}\right) \\ =25000 \end{gathered}$$

Hence, the list price of the TV set is Rs 25,000.