Question

Anu purchased a video player for Rs. 1760 including VAT. If the rate of VAT is 10% of the SP. Then the SP of the video player is:
(a)Rs. 1650
(b)Rs. 1700
(c)Rs. 1640
(d)Rs. 1600

Answer 1

Hint: We have to understand that we have been given the value of 110% of the initial price as 1760. So first we will find the value of 1% and then we will multiply that price by 100 to find the price at 100% and that will be the value of SP.

Complete step-by-step answer:
Let’s start solving this question.
It is said that Anu purchased a video player for Rs. 1760 including VAT. The rate of VAT is given to us as 10% of the SP.
VAT is abbreviated as value added tax and it is to be added to the selling price of the product. Therefore, according to the question, we can write that
1760 = SP + 10% SP
1760 = 110% SP
We can again rewrite it as 110% of SP = 1760.
Therefore, 1% of SP is $\dfrac{1760}{110}=16$
Now the value of 1% of SP is Rs. 16, therefore, the value of 100% of SP will be
$\begin{align}
  & =16\times 100 \\
 & =1600 \\
\end{align}$
Hence, the SP of the video player is Rs. 1600.
Therefore, option (d) is correct.

Note: One can also solve this question by taking the value of SP of the video player as x then the value of 110% of x is given as 1760, therefore from this we can directly find the value of 100% and that will be the SP of the video player.