Question:
Malti bought a VCR for Rs 19980 including VAT. If the original price of VCR be Rs 18500, find the rate of VAT.
Solution:
Let the rate of VAT be x%. Then, we have:
$18500+x \%$ of $18500=19980$
$\Rightarrow\left(\frac{x}{100} \times 18500\right)=19980-18500$
$\Rightarrow 185 x=1480$
$\Rightarrow x=\frac{1480}{185}$
$\quad=8$
∴ The rate of VAT is 8%.