Question

VALUE ADDED TAX (TAX) IS ADDED AT 15 % FOR GOOD AND SERVICES IN SOUTH AFRICA. WHAT WILLBE THE SELLING PRICE OF A LAPTOP THAT COSTS R4 200 BEFORE VAT

Answer 1

To find the selling price of the laptop that costs R4 200 before VAT, we need to add 15% VAT to the cost.

The VAT amount can be calculated as:

VAT = 15% of R4 200

VAT = (15/100) x R4 200

VAT = R630

The selling price including VAT will be the cost of the laptop plus the VAT amount:

Selling price = R4 200 + R630

Selling price = R4 830

Therefore, the selling price of the laptop that costs R4 200 before VAT will be R4 830 after adding 15% VAT.