Question

The price of a watch including 8% VAT is Rs.810. What is its basic price? 

A. Rs. 675 

B. Rs. 729 

C. Rs. 750 

D. Rs. 745

Answer 1

VAT = 8% 

Selling Price = Rs.810 

Let × be the base price. 

Vat Amount = 8% of x 

= 8x/100 

Base Price + VAT = Selling Price 

x + 8x/100 = 810 

108x/100 = 810 

x = (810 × 100) / 108 

= Rs.750 

So, Cost Price of watch is Rs.750