Question:
Mohit bought a shirt for Rs 1337.50 including VAT at 7%. Find the original price of the shirt.
Solution:
Let the original price of the shirt be Rs x.
VAT = 7% of Rs x
$\therefore$ Price including VAT $=$ Rs. $\left(x+\frac{7 x}{100}\right)$
$=$ Rs. $\frac{107 x}{100}$
Now, $\frac{107 x}{100}=1337.50$
$\Rightarrow x=\operatorname{Rs}\left(1337.50 \times \frac{100}{107}\right)$
= 1250
Hence, the original price of the shirt is Rs 1,250.