Question

The price of book including 8% VAT is Rs.1026. What is its original price excluding VAT?
1.  Rs. 750
2.  Rs. 850
3.  Rs. 950
4.  Rs. 1050

Answer 1

Correct Answer - Option 3 :  Rs. 950

Given:

VAT = 8%

Cost of book Including VAT = Rs.1026

Formula Used:

Original price = (Cost including VAT × 100)/(100 + VAT%)

Calculation:

Original price = (Cost price including VAT × 100)/(100 + VAT%)

⇒ Original price = (1026 × 100)/(100 + 8)

⇒ Original price = Rs. 950

∴ Price of the book excluding VAT is Rs. 950.

The correct option is 3 i.e Rs. 950.