Question

Tick (✓) the correct answer:
The price of watch including 10% VAT is Rs 825. What is its basic price?
(a) Rs 742.52
(b) Rs 775
(c) Rs 750
(d) Rs 907.50

Answer 1

(c) Rs.750

$$\begin{gathered} \mathrm{Let}\mathrm{the}\mathrm{basic}\mathrm{price}\mathrm{be}x. \\ \mathrm{VAT}=10\%\mathrm{of}\mathrm{Rs}x \\ =\mathrm{Rs}\left(\mathrm{x}\times \frac{10}{100}\right) \\ =\mathrm{Rs}\frac{\mathrm{x}}{10} \\ \therefore \mathrm{Price}\mathrm{including}\mathrm{VAT}=\mathrm{Rs}\left(\mathrm{x}+\frac{\mathrm{x}}{10}\right) \end{gathered}$$
$=Rs.\frac{11x}{10}$
$\mathrm{Now},\frac{11\mathrm{x}}{10}=825$
$$\begin{gathered} \Rightarrow x=\left(825\times \frac{10}{11}\right) \\ \Rightarrow x=750 \end{gathered}$$

∴ The basic price of the watch is Rs 750.