Question

Seema bought a fridge for $Rs.14300$ including VAT of $10\%$. Find the price of the fridge before VAT was added?

Answer 1

Hint: Always we buy the product at the price that is included with the Value Added Tax (VAT). Simply removing the VAT from the price gives the actual cost of the product. Here removing refers to the subtracting in the mathematical form.

Complete step by step solution:
Given that,
Price of the fridge including the VAT is $Rs. 14300$.
Percentage of the VAT in the price is $10\%$
Now,
We can calculate the any percentage of content by dividing the percentage value with the $100$(cent) and then after multiplying with the total value.
Suppose if we need to calculate $x$ percent in $y$, then it can be calculated as:
$(x\div 100)\times y$
Here, $x$ is percent required and $y$ is the total value.
So,
Computing $10\%$ in $14300$ is as follows:
VAT value $=(10\div 100)\times 14300$
$=(1\div 10)\times 14300$
$=1430$
Now, the VAT value of the fridge is $Rs.1430$.
So, the fridge value can be calculated by subtracting VAT value from the price as follows:
Price without $VAT=14300-1430$
$=12870$

So, the price of the fridge before VAT was added is $Rs.12870$

Note: Here we solved this problem by computing the VAT amount first and we got the final answer by deducting the VAT value from the price of the fridge to get its value without VAT. This problem can be tackled in another way too. The percent of VAT in the total amount of $10\%$. So, if we compute the $90\%$ in the total value it will equal the price of a fridge without VAT.