Question

b) Find the original cost of a digital camera, if 13% VAT is levied on it and a payment of Rs. 20,905 is made.​

Answer 1

The original cost of the digital camera is Rs. 18,500.

Explanation:

Let c be the original cost of the digital camera

Since VAT of 13% was added then we can say that the amount that was paid was 13% more than the original price. So the payment made was 113% of the original amount or 1.13 in decimal

Payment = original cost + 13% VAT

20, 905 = c + 0.13c

20, 905 = 1.13c

Divide both sides of the equation by 1.13

20905/1.13 = 1.13c/1.13

18,500 = c

c = Rs. 18,500