Question:
A TV set was bought for Rs 26,250 including 5% VAT. The original price of the TV set is
(a) Rs 27,562.50
(b) Rs 25,000
(c) Rs 24,937.50
(d) Rs 26,245
Solution:
(c) Rs 24,937.50
Explanation: Cost price of TV set = Rs. 26250.
VAT including = 5%
Original price = Cost price of article including VAT = 26250 – (5/100) x 26250
= 26250-1312.5
=24,937.50
Therefore, original price of TV set is = Rs. 24,937.50