Question

Find the cost of a car if it costs $25000 plus 18% VAT.

Answer 1

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.