Question

A refrigerator is available for Rs. 13750 including VAT. If the rate of VAT is 10%, find the original cost of the refrigerator.

Answer 1

Given,

Cost of refrigerator inclusive VAT = Rs.13750

Rate of VAT = 10%

So,

= \(x+\frac{10x}{100}\) = 13750

= \((\frac{11}{10})x\) = 13750

= x = \(\frac{13750\times 10}{11}\) = Rs. 12500

Hence,

Original cost of furniture = Rs.12500