Question

1) Ryan buys a sofa for £2500 plus VAT at 20%
a) What is the total price of the sofa?

Answer 1

Given :-

• Ryan buys a sofa for £2500 .
• VAT is 20% .

To Find:-

• Total price of the sofa.

Solution:-

Here we are given that Ryan purchases a sofa for £2500 . In order to find the cost of sofa after VAT , find 20% of the price of the sofa,

20% of £2500

20/100 * £2500

£500

Now add this to the original price of the sofa,

£2500 + £500

£3000

Hence the cost of the sofa after VAT is £3000 .

Answer 2

The total price of the sofa is £3000.

Explanation:

1. Calculate the amount to pay for VAT.

To calculate this, multiply the given amount by "0.2", which equals "20%".

`2500*0.2=500`

2. Add up the two number to find the total amount due.

`2500+500=3000`

3. Conclude.

The total price of the sofa is £3000.

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Alternative (and also easier) method.

So if we want to add 20% of any amount to said amount, we may multiply it by (1+0.2), which equals "1.20", and it'll give us the result immediately:

`2500*(1+0.2)\\ \\2500*1.2=3000`

Now, working on the opposite way, let's say we want to reduce that same number (2500) by 25%, maybe because there's a discount on the product. In that case, we must multiply by (1-0.25), which equals 0.75:

`2500*(1-0.25)\\ \\2500*(0.75)=1875.`