Question:
Tanvy bought a watch for Rs 1980 including VAT at 10%. Find the original price of the watch.
Solution:
Let the original price of the watch be Rs x.
VAT = 10% of Rs x
$=\mathrm{Rs} \quad\left(x \times \frac{10}{100}\right)$
$=\mathrm{Rs} \frac{10 x}{100}$
$\therefore$ Price including VAT $=\mathrm{Rs}\left(x+\frac{x}{10}\right)$
$=\operatorname{Rs} \frac{11 x}{10}$
Now, $\frac{11 x}{10}=1980$
$\Rightarrow x=\left(1980 \times \frac{10}{11}\right)$
= 1800
Hence, the original price of the watch is Rs 1,800.