Question

The sales price of a television, inclusive of VAT, is Rs 13,500. If VAT charged at the rate of 8% of the list price, find the list price of the television.

Answer 1

\[\text { Let the list price of the TV be Rs . x } . \]

\[\text { VAT charged = 8 % } \]

\[\text { Given, } \]

\[\text { Cost price of the TV = Rs .} 13, 500\]

\[\text { So }, \]

\[\text { Cost price of the TV = x + 8 % of x }\]

\[13, 500 = x + 0 . 08x\]

\[13, 500 = 1 . 08x\]

\[x = \frac{13, 500}{1 . 08}\]

\[x = \text { Rs } . 12, 500\]

\[\text { Thus, the list price of the TV is Rs } . 12, 500 .\]