Question

A retailer offers a 15% discount on the marked price of an electric fan. If a customer pays $3842 with a 13% VAT, find the price excluding VAT.

Answer 1

The final price excluding VAT is $4003.

Step-by-step explanation:

To find the price excluding VAT, we need to work backwards from the final amount paid, which includes VAT.

First, we need to remove the VAT to find the original price before the discount.

Since the VAT is 13%, we can divide the final amount by 1.13 to find the price before VAT.

In this case, $3842 / 1.13

= $3402.65.

Next, we need to remove the 15% discount to find the marked price.

To do this, we can divide the price before VAT by 0.85.

In this case, $3402.65 / 0.85

= $4003.

Therefore, the price excluding VAT is $4003.