Question

Prachi bought medicines from a medical store as prescribed by her doctor for Rs 36.40 including 4% VAT. Find the price before VAT was added.

Answer 1

Given that, the price of medicine including 4% VAT is 36.40.

We have, selling price = cost price + VAT

⇒ Cost price = Selling price – VAT

⇒ The price before VAT was added = price including VAT – VAT

⇒ The price before VAT was added = `36.40 - 4/100 xx 36.40`

= 36.40 – 1.456

= Rs. 34.944

= Rs. 35