Question

When Sunayana purchased a video game, she paid Rs 162.50 with VAT at the rate of 12%. What is the cost of the video game without levying VAT?

a) Rs 144.64
b) Rs 145.76
c) Rs 150.00
d) Rs 153.13

Answer 1

To calculate the pre-VAT cost of the video game, divide the total paid amount by 1 plus the VAT rate in decimal form. Substituting the given values, the pre-VAT cost comes to approximately Rs 145.

Step-by-step explanation:

To find the cost of the video game without levying VAT, we need to calculate the original cost of the game. Since Sunayana paid Rs 162.50, including VAT at the rate of 12%, we can set up the equation:

Original cost + 12% of the original cost = Rs 162.50

Solving for the original cost, we have:

1.12 * original cost = Rs 162.50

Dividing both sides of the equation by 1.12, we find:

original cost = Rs 162.50 / 1.12 = ₹ 145.54

Therefore, the cost of the video game without levying VAT is Rs 145.54 (approximately).