Question

2.3 The cost price of a laptop at GAME is R4 500.00, the total cost is calculated including VAT. How much did the laptop cost before VAT was added? (Hint: VAT= 15%)​

Answer 1

Explanation/Answer:

Let's keep in mind the concept of applying a percentage. To apply a 15% percentage for a product in sell, we either multiply the price of the product by 0.15 and add it to the cost of the product, or we multiply the price of the product by 1.15. Now, if the cost of the laptop is R4 500.00, after VAT, the equation that gives us the price before VAT is the following:

`x*1.15=4500`, where x is the cost of the laptop before VAT.

• Solve the equation for x.

`x*1.15=4500\\ \\x=(4500)/(1.15)\\ \\ x=3913.04`

• Result.

The price of the laptop was, approximately, 3913.04 before VAT.