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Question
A TV set was bought for Rs 26,250 including 5% VAT. The original price of the TV set is ______.
Options
Rs 27,562.50
Rs 25,000
Rs 24,937.50
Rs 26,245
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Solution
A TV set was bought for Rs 26,250 including 5% VAT. The original price of the TV set is Rs 24,937.50.
Explanation:
Cost price of TV set = Rs. 26250.
VAT including = 5%
Original price = Cost price of article including VAT = `26250 - 5/100 xx 26250`
= `26250 - 26250/20`
= 26250 – 1312.50
So, original price of the TV set = Rs. 24937.50
Hence, Rs 24,937.50
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