Question:
Sajal purchased some car parts for Rs 20776 including VAT at 12%. What is the original cost of these spare parts?
Solution:
Let the original cost of the spare parts be Rs $x$.
$\mathrm{VAT}=12 \%$ of Rs. $x$
$=$ Rs. $\left(x \times \frac{12}{100}\right)$
$=$ Rs. $\frac{12 x}{100}$
$\therefore$ Price including VAT $=$ Rs. $\left(x+\frac{12 x}{100}\right)$
$=$ Rs. $\frac{112 x}{100}$
Now, $\frac{112 x}{100}=20776$
$\Rightarrow x=\left(20776 \times \frac{100}{112}\right)$
= 18550
Hence, the original cost of the spare parts is Rs 18,550.