Question 44

The price of a Television is ₹ 14000 inclusive of VAT. If the rate of VAT is 12%, find the basic price of the Television.

Solution

Let cp be 100

Rate of vat - 12%

= 12% of 100 = 12

so sp = 100 + 12 = 112

Price of tv inc vat- 14000
Atq

14000 = 112

X. = 100
Price of tv excluding vat= $$14000\times 100\div 112$$
=12500

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