A refrigerator is available for Rs 13750 including VAT.

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 .

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