Question

Ajit buys a motorcycle for Rs. 17600 including value added tax. If the rate of VAT is 10%, what is the sale price of the motorcycle?

Answer 1

Given,

Cost of motorcycle including VAT = Rs 17600

Rate of VAT = 10%

Let us consider the sale price be = Rs x

VAT at the rate of 10% on Rs x = Rs 10/100 × x = Rs 10x/100

So,

x + 10x/100 = 17600

11x/10 = 17600

11x = 17600×10

x = 176000/11

= 16000

∴ Sale price of the motorcycle is Rs 16000.