Question

The price of an article is Rs 1200 and a customer pays Rs 1380 with VAT. Find the rate of VAT​

Answer 1

15%

Explanation:

vat amount

= 1380 - 1200

=180

finding the rate of vat

= 1380/1200 *100

= 115%

NB : the 115% shows that 1200 8 115% = 1380 , this give total amount including vat , we only want vat hence we have to deduct the 100% which indicates the amount of article)

hence 115 - 100 = 15%

15% * 1200= 180