Question:
Ajit buys a motorcycle for Rs 17600 including value added tax. If the rate of VAT is 10%, what is the sale price of the motorcycle?
Solution:
Let the sale price of the motorcycle be Rs $x$.
Cost including VAT $=10 \%$ of $x+x$
$17600=\frac{10}{100} \times x+x$
$17600=0.10 x+x$
$1.10 \mathrm{x}=17600$
$x=\frac{17600}{1.10}$
$=16000$
Thu $s$, the sale price of the motorcycle is Rs 16000 .