Answer:
The car costs $29,500 after the value tax.
Explanation:
First, put the percentage into decimal form. Since we are adding on the tax, add an additional 1 into the decimal.
This is what we will use to multiply with: 1.18.
We know the cost of the car, $25,000 and it's VAT, 18%.
To determine how much it will cost after the added value tax, we multiply $25,000 with 1.18 because it is an additional cost to that car specifically.
25,000 x 1.18 = 29,500
The car costs $29,500 after the value tax.