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

\[\text { Cost of the furniture inclusive VAT = Rs } . 7150\]

\[\text { Let the original cost of the furniture be Rs } . x . \]

\[\text { Cost of the furniture = 10 % of x + x }\]

\[7150 = 1 . 10x\]

\[x = \frac{7150}{1 . 10}\]

\[ = \text { Rs } . 6500\]

\[\text { Thus, the original cost of the furniture is Rs } . 6500 .\]