Question:
Mark (✓) against the correct answer:
The price of a watch including 8% VAT is Rs 810. What is its basic price?
(a) Rs 675
(b) Rs 729
(c) Rs 750
(d) Rs 745
Solution:
(c) Rs.750
Let the original price be Rs $x$.
$\mathrm{VAT}=8 \%$ of Rs $x$
$=\operatorname{Rs}\left(x \times \frac{8}{100}\right)$
$=\operatorname{Rs} \frac{8 x}{100}$
$\therefore$ Price including VAT $=\mathrm{Rs}\left(x+\frac{8 x}{100}\right)$
$=R s . \frac{108 x}{100}$
Now, $\frac{108 x}{10}=810$
$\Rightarrow x=\left(810 \times \frac{100}{108}\right)$\
$\Rightarrow x=750$