Question:
Rohit purchased a pair of shoes for Rs 882 inclusive of VAT. If the original cost be Rs 840, find the rate of VAT.
Solution:
Let the rate of VAT be x%. Then, we have:
$840+x \%$ of $840=882$
$\Rightarrow\left(\frac{x}{100} \times 840\right)=882-840$
$\Rightarrow \frac{84 x}{10}=42$
$\Rightarrow x=\left(42 \times \frac{10}{84}\right)$
$=5$
$\therefore$ The rate of VAT is $5 \%$