Question

The price of watch including 10% VAT is Rs. 825. What is its basic price? 

A. Rs. 742.50 

B. Rs.775 

C. Rs. 750 

D. Rs. 907.50

Answer 1

VAT = 10% 

Selling Price = Rs.825 

Let x be the base price. 

Vat Amount = 10% of x 

= x/10 

Base Price + VAT = Selling Price 

x + x/10 = 825 

11x/10 = 825 

x = (825 × 10) / 11 

= Rs.750