Question

A refrigerator is available for Rs 13750 including VAT. If the rate of VAT is 10%, find the original cost of the furniture.

Answer 1

\[\text { Cost of the refrigerator inclusive VAT = Rs } . 13, 750\]

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

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

\[13, 750 = 1 . 10x\]

\[x = \frac{13, 750}{1 . 10}\]

\[ =\text {  Rs } . 12, 500\]

\[\text { Thus, the original cost of the furniture is Rs .  }12, 500 .\]