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\[VAT\%=\dfrac{VAT\ amount}{\cos t\ price}\times 100\]

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.

As mentioned in the question, we have to find the VAT% for the transaction.

Now, we can see that before VAT addition, the cost price is Rs. 900 and after VAT addition, the cost price is Rs. 990.

Hence, we can write the following

VAT amount=Rs.(990-900)

So, on using the formula that is mentioned in the hint, we get the following result

\[\begin{align}

& \Rightarrow VAT\%=\dfrac{VAT\ amount}{\cos t\ price}\times 100 \\

& \Rightarrow VAT\%=\dfrac{90}{900}\times 100=10\% \\

\end{align}\]

One should have knowledge about VAT(Value Added Tax).

Also, without having clarity in the formulae one could never get to the solution.