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Last updated at March 23, 2023 by Teachoo
Example 9 (Value Added Tax (VAT)) Waheeda bought an air cooler for Rs 3300 including a tax of 10%. Find the price of the air cooler before VAT was added. The price includes VAT means that bill amount has Price + VAT Given, Amount Paid (Bill Amount) = 3300 Tax Percentage = 10% Let the original Price = x Tax Amount = Vat Percentage × Price = 10% × 𝑥 = 10/100 × 𝑥 = 1/10 × 𝑥 Now, Bill Amount = Price + Tax Amount 3300 = 𝑥 + 1/10 𝑥 3300 = (10𝑥 + 𝑥)/10 3300 = 11𝑥/10 (3300 × 10)/11 = 𝑥 3000 = 𝑥 𝑥 = 3000 ∴ Original Price = Rs 3000