Question

The cost of furniture inclusive of VAT is Rs. 7150. If the rate of VAT is 10%, find the original cost of the furniture.

Answer 1

Given,

Cost of furniture inclusive of VAT is = Rs 7150

VAT = 10%

Let us consider the original cost of furniture be = Rs x

VAT at the rate of 10% on Rs x = Rs 10/100 × x = Rs 10x/100

So,

x + 10x/100 = 7150

(100x+10x)/100 = 7150

110x/100 =7150

11x/10 = 7150

11x = 7150 × 10

x = 71500/11

= 6500

∴ Original cost of the furniture is Rs 6500