Question

James buys a computer. The seller reduces the price by 30% and adds VAT at 17.5%. If James pays £1551 for the computer, what was its original price? (Give your answer to the nearest pence.)

Answer 1

£1885.71

Explanation:

Reducing by 30% is doing this: 100% - 30% = 70% = 0.7

Reducing a price by 30% is the same as multiplying the price by 0.7

Adding 17.5% is doing this: 100% + 17.5% = 117.5% = 1.175

Adding 17.5% to a price is the same as multiplying the price by 1.175

Let the original price be x.

1.175 × 0.7 × x = £1551

x = £1551/(1.175 × 0.7)

x = 1885.71

Answer: £1885.71