Question:
A refrigerator is available for Rs 13750 including VAT. If the rate of VAT is 10%, find the original cost of the furniture.
Solution:
Cost of the refrigerator inclusive VAT $=$ Rs. 13,750
Let the original cost of the furniture be Rs. $x$.
Cost of the furniture $=10 \%$ of $x+x$
$13,750=1.10 x$
$x=\frac{13,750}{1.10}$
$=$ Rs. 12,500
Thus, the original cost of the furniture is Rs. 12,500 .