Question

The price of a car

including VAT at 20%
is £14400.

Work out the original
price before VAT:

Answer 1

£18000

Explanation:

`x` x 80/100=14400

80x=1440000

x=1440000/80

x=£18000

Answer 2

Let's call the price before the VAT "x".

Then x plus that 20% VAT totals 14400.

The VAT is calculated as 20% of the original price, so 20% of x or 0.20x.

This gives us x + 0.20x = 14400.

Simplifying, we get 1.2x = 14400.

Dividing by 1.2 on both sides, we get x = 14400/1.2 = 12000.