Question

# Manoj buys a leather coat cost Rs 900.at Rs.990 after paying the VAT. Calculate the rate of VAT charged on the coat?

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Hint: Use the fact that the VAT% is the VAT amount divided by the cost price of a product. The formula for it is as follows
$VAT\%=\dfrac{VAT\ amount}{\cos t\ price}\times 100$
Now, in this question, we will simply put the values of the respective terms and then we will get the value for the desired value.
Also, the VAT amount is nothing but the new cost price minus the old cost price that is
VAT amount= cost price – the old cost price.

\begin{align} & \Rightarrow VAT\%=\dfrac{VAT\ amount}{\cos t\ price}\times 100 \\ & \Rightarrow VAT\%=\dfrac{90}{900}\times 100=10\% \\ \end{align}