Question

The price of a calculator is Rs 3000 excluding 13% VAT in the shop A, while its price is Rs 3,277 including VAT in the shop B. Which shop is cheaper and by how much? ​

Answer 1

Shop B is cheaper than shop A by ₹44.87.

Explanation:

For shop A:

Amount of VAT = 13% of 3000 = ₹390

For shop B:

Let the price of the calculator excluding VAT be ₹x.

Therefore,

x + 13% of x = 3000

x + 0.13x = 3000

1.13x = 3000

x = 3000/1.13

x = 2,654.86726

x = ₹2654.87

Amount of VAT = 3000 - 2654.87

= ₹345.13

390 - 345.13 = ₹44.87

So, shop B is cheaper than shop A by ₹44.87.