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

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

$$\text{ VAT charged = 8 \% }$$

$$\text{ Given, }$$

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

$$\text{ So },$$

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

$$13,500=x+0.08x$$

$$13,500=1.08x$$

$$x=\frac{13,500}{1.08}$$

$$x=\text{ Rs }.12,500$$

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