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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.
Solution
\[\text { Cost of the furniture inclusive VAT = Rs } . 7150\]
\[\text { Let the original cost of the furniture be Rs } . x . \]
\[\text { Cost of the furniture = 10 % of x + x }\]
\[7150 = 1 . 10x\]
\[x = \frac{7150}{1 . 10}\]
\[ = \text { Rs } . 6500\]
\[\text { Thus, the original cost of the furniture is Rs } . 6500 .\]
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